Do I have to get Home Owner’s insurance?
Sunday, February 22nd, 2009 at
6:53 pm
itstimeformyshot asked:
I don’t really know anything about buying homes, but I’m considering buying my first house. I’ve heard that you have to have home owner’s insurance. Do you really have to get it or is it just an option?
I don’t really know anything about buying homes, but I’m considering buying my first house. I’ve heard that you have to have home owner’s insurance. Do you really have to get it or is it just an option?
Tagged with: Buying Homes • First House • Insurance
Filed under: Homeowners Insurance
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Usually when you buy a home the lender will make it manditory for you to carry insurance… sometimes it is added right into your payment. good luck
No lender will touch you without it. They have to have their potential loss covered.
You d not have to carry it if you do not owe anything on it. I would not risk being without it.
well u dont have to but if it lights on fire or anything happens to it then u gotta pay for it out of ur pocket so its better to pay a little now then alot later
Source is a link to the Insurance Information Institute.
If you pay cash for the house and have no mortgage, then you can buy it or not, although with that much of an investment it would be really smart to carry insurance on the house and its contents.
However if you borrow to buy the house, most mortgage lenders will require you to purchase insurance and will not agree to finalize the lending agreement until they see proof of insurance. They want their investment protected.
If you plan to get a mortgage, the mortgagee will require the house be insured. Unless you are so well off that you can afford to pay cash for your home and have the means to completely rebuild it (and replace all your contents) should it completely burn down, Homeowner’s Policies almost always cover liability as well.
If you are financing the home then you need home owners insurance. The lender requires it and it is important to protect your home. All you need to do is go to a local insurance agency and ask them for a quote once you find a home and have an accepted offer on the house.
All of the previous answers are CORRECT!!
And even if you pay for the house in cash….the cost of home insurance is just pennies on the dollar.
Shop the price w at least three companies, & consider having a deductible of at least $500. That will keep the cost down.
Put it this way, would you loan money to someone
to buy a car, if they had no insurance on the car?
Banks want to protect the collateral, and require you to have insurance on the house.
no but it will be very valuable to you if you do fire theft flood get all you deserve you dont know what can happen earthquack be protected
You have to have it if you have a mortgage–your mortgage company mandates it. Once you pay off the mortgage, if you don’t want it you don’t have, but what happens if your house burns down? How would you rebuild? You would still owe money for a burned down house.
It’s an option.
Homeowners insurance is the CHEAPEST way to satisfy the insurance requirement if you are going to have a mortgage. If you don’t have a mortgage, of course, no one is going to require you to insure the house – because if it burns down, well, tough luck. If someone slips on the sidewalk, get ready to write a big fat check!!
But if you have a mortgage, and don’t WANT homeowners coverage (which gives you liability and contents coverage, also), you can always buy a straight dwelling policy (which should cost about 25% more, and ONLY covers the house) to make the mortgage company happy.
If you owe on the home than the bank, or who ever finances the home requres that you have insurance and the insurance has to be enough to cover the loan if the home should burn. Also, this protects your personal items. Also, if the home is found to be in a flood zone you will also have to have flood insurance and this is a separate policy from your homeowners policy.
Yes you have to get it, if you get a loan.