Although home insurance is not required by law, it is likely that your bank will require it before underwriting your mortgage. However, even if the bank does not or you purchased your home without financing, home insurance is a no-brainer purchase because it protects you and your loved ones from devastating financial loss. If you do not have home insurance and your house is destroyed in a fine, you are financially responsible for all costs associated with the incident up to and including rebuilding the structure. Unless you have an extra few hundred thousand dollars laying around to rebuild your home, you’ll want to have the security that homeowners insurance offers. If you are on the fence about home insurance, ask yourself – if your home and all your belongings are destroyed; could you afford having to start over from nothing? If not, you’ll want to have home insurance coverage.
Most mortgage lenders will ask that you insure your home to at least the rebuilding value which is determined by the insurance company. Aside from being financially protected by a home insurance policy, you’ll also receive liability coverage, so if a third party is injured on your property, your insurance will kick in until your liability coverage is exhausted. Most home insurance policies will also include dwelling coverage that pays for damage to the structure of your home that is caused by a storm, wind, or other covered incident along with additional living expenses if your home is uninhabitable because of a covered loss.
At Gill Insurance Agency in Plainfield, IN we know that you have lots of questions about home insurance so we encourage you to give us a call to learn more about our agency and how we can help you with all your insurance needs.