People purchase homes for a variety of reasons. Some homeowners want to move closer to where they work since they’re tired of having to drive an hour plus to get to their job. Sometimes potential homeowners simply want a better way of life, and they see a home as providing just that. Maybe their new home is in a nice neighborhood. Perhaps the new home provides their children with a chance to receive a quality education at a good school. The reason for moving to a new house might just be as simple as needing more space for a growing family.
When you purchase a home though you will need to purchase home insurance. Insurance coverage protects policyholders against financial loss. Insurance provides this protection in addition to being utilized for many other things. Below we’ll discuss why having home insurance for your house is a must.
Provides Protection
Your first step in getting insurance coverage for your home is to contact an insurance company. They will be able to answer any questions that you might have about obtaining homeowners insurance. You can also do a home insurance compare between different insurance companies to get a better idea of what home insurance options are available before reaching out to an insurance company at all. One common thread that you’ll find amongst all of the insurance coverage options that you find is that they all provide some form of protection. Whether it’s personal property coverage (which pertains to personal belongings), liability coverage, flood insurance coverage, or replacement cost coverage, your homeowner’s insurance policy will provide protection for your home and personal property.
Let’s say your home suffers water damage from a recent flood. Depending on the type of flood insurance coverage that you have, many of your repairs and replacement costs will be taken care of. If you are unable to live in your home after this same flood, home insurance can also help with additional living expenses that may crop up. The same type of protection extends to other disastrous events like earthquakes, home fires, or tornado damage. A home insurance policy owner can have some peace of mind that any peril that their home might face, small or large, will be protected underneath their homeowner’s insurance policy.
Required by a Lender
When you seek out financial lending for a new home, many lenders require that you have home insurance. This is not a requirement for most states in the U.S., but it is a requirement that many financial lenders request. In most cases, this is required because home insurance policy coverage can cover homes in the case of severe weather, fire, and vandalism. Just like business leaders such as Venterra CEO John Foresi, these lending businesses are finding the best way to ensure customer satisfaction and their business’s financial security by instituting such business practices. Venterra communities are known for being a great place to live in various major US cities for precisely this reason. John Foresi always emphasizes that tenants at Venterra communities are like family members to him and Venterra staff, and that’s why he wants them to be well cared for.
For certain lenders, if you don’t purchase homeowners insurance coverages such as liability coverage, personal property coverage, and replacement cost coverage, they will buy a policy in your name. These additional costs for extra coverage will be added to your monthly payments. The unfortunate thing about this is that your lender will not necessarily attempt to find the best homeowners insurance company for your wallet.
They won’t attempt to find the best rates for homeowners insurance coverage amounts, and this can increase the monthly lending rate you are paying back. That is why it helps to find your own separate policy, which will ensure that you won’t be paying a higher rate for your homeowner’s insurance. It’s a good idea to work with an insurance agency or do your own home insurance comparison to find the best and cost-effective policy for you. If you don’t, your lender will contact a broker for you.
