Is Home Insurance Required of Me?

Is Home Insurance Required of Me?

When you become a homeowner, you want to make sure you abide by all rules. You may have been told that you need home insurance, but is it actually required of you? In most instances, it is required. Although it's not required on the state level, it is required by all mortgage companies. This means that the only way to avoid paying for homeowners insurance is to purchase your home outright, or to have already paid the home off.

Why Do Mortgage Companies Require Insurance?

Consider what would happen if your home was ruined and could not be replaced. You would stop making mortgage payments. That’s because you no longer have a home to live in. While it makes sense, you are still legally obligated to the loan, whether the home is there or not.

This is the very reason why mortgage companies require you to have home insurance. They need to protect their investment. If something happens to the home, the policy will make it possible for repairs and replacements to be made. You will continue to make payments – and if you don’t, they have the means of making the repairs or replacements so that it is not a complete loss for them.

Why it's a Good Idea to Have Home Insurance

You never know what could happen in or around your home. You can’t control natural disasters like hurricanes, floods, and fires. If your home is damaged in any way, it could cost you a lot of money to make the repairs. You might also lose a lot of your belongings, and the cost to replace could also be outrageous.

With home insurance, you get to file a claim with the insurance company. They will conduct an inspection and then determine whether they are going to accept the claim. If they do, the repairs and replacements could be handled entirely, once you pay the deductible. This will end up saving you a significant amount of money.

How to Get an Affordable Policy

If you are worried about home insurance in Florida being expensive, you can focus on getting an affordable premium. Working with an independent insurance agent allows you to get help throughout the process. They will be able to get quotes for you from some of the top insurance companies across the state. This will allow you to compare more effectively to determine whether you are getting a good rate. An agent will also be able to guide you in terms of choosing sufficient coverage for your home.

Although Florida does not require you to have home insurance, it is required by mortgage companies. Even if you don't have a mortgage, it's best to spend the money so that you have coverage against the various things that could happen to your home throughout the year.