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The Risks of Not Having Homeowner’s Insurance

The Risks of Not Having Homeowner’s Insurance

Homeowner’s insurance is legally required in most states. If you don’t have it, it’s time to start shopping. Forgoing this protection may seem like a smart budget decision, but the risks of not having homeowner’s insurance are just too great. Learn why you need this essential coverage.

Violates Your Mortgage

Usually, you must attain homeowner’s insurance to even get a loan for your mortgage. It’s typically written within a clause of your mortgage agreement that you will maintain some sort of financial protection for your home. Canceling your insurance may result in foreclosure on your home.

You Could Be Sued

You are responsible for any injury that takes place on your property, and some people are quick to sue in the event of an accident. Even if a trespasser gets hurt in your yard, you may have to pay for their medical bills, and you may have to go through a legal battle if someone decides they want to take you or your insurance company to court. You need homeowner’s insurance to protect you from this liability. Court fees and medical fees are expensive, but your policy may cover both if you have the right coverage.

You Might Lose Your Home to Natural Causes

If you don’t have homeowner’s insurance, you risk losing our entire house. Natural disasters can destroy entire homes in minutes. It’s important to know what your insurance policy covers in these cases—for instance, if you live in California, you should attain a policy that covers damages caused by earthquakes, mudslides, and fires.

Depending on where you live and on the condition of your home, you may need to utilize your insurance policy more than you think. Not having one could put you in a terrible financial position. Though insurance increases your monthly expenses, it protects you from paying high out-of-pocket expenses. Protect your money with a good policy—the risks of not having homeowner’s insurance are simply too great. Foreclosure and financial instability are stresses that no one needs to deal with, and you can avoid them with the right coverage.