Driving factors to obtain homeowners insurance
July 31, 2014
For most Americans, there are two major reasons to acquire a homeowners insurance policy. The first reason is the most obvious, being that an insurance plan protects a homeowner's assets.
Mortgage lenders will ask that you take out an insurance plan on your home.
Not only will it shield the structure of your home and your personal belongings, but a homeowners insurance policy will also safeguard your bank account by protecting you from legal responsibility for injuries to others while they are on your property, according to the National Association of Insurance Commissioners.
Reason No. 2 is that a homeowners insurance policy will satisfy your mortgage lender. Government sponsored mortgages ask that you take out insurance as long as you have a mortgage. If you let your insurance drop, your mortgage lender will likely make sure that your home is properly insured. This means that they will take out a policy and force you to pay the premiums. This is generally not ideal, as you can likely find cheaper premiums if you were to acquire a plan on your own.
Potential homebuyers looking for an affordable home insurance insurance policy should consider the benefits of SelectQuote Auto & Home. SelectQuote compares quotes from 14 of the nation's premier insurers to find the right plan for you.
A standard homeowners policy might cover more than you think
While many homeowners understand that their insurance policy would cover their possessions in the case of theft, vandalism or temperamental weather, some are unaware that homeowners insurance can protect belongings that are outside of their home.
“Most policies will cover your belongings when they are traveling with you,” Ellen Derrick, a certified financial planner with LearnVest Planning Services, told Fox News. “If you have a $1,200 laptop and it gets lost by the airline, call your insurance agent—right after you file the claim with the airline, of course.”