You can purchase insurance on just about anything. Should you get it on your home?
Yes, and in most cases home insurance is actually required.
Data from Zillow says roughly 37% of U.S. homeowners actually own their home outright. That leaves 63% still under mortgage. This is relevant because essentially every mortgage company, bank, credit union, etc., states that in order to qualify for financing the home must be fully insured.
“If I don’t have a mortgage or I pay it off, do I still need home insurance?”
No you aren’t required to have home insurance, but it’s recommended.
Home insurance may seem to some like yet another pesky hoop to jump through in obtaining a home. Referencing earlier data: just because around 63% of US homes are still under mortgage doesn’t mean that 63% have home insurance. That number is actually 85%.
And for good reason. Insurance could be defined as a hedge against risk.
The risks in this case?
- Roof leaks
- Plumbing issues
… just to name a few.
Let it also be noted that many home insurance policies aren’t one-size-fits-all and in fact customizable. Be thorough in examining policies so you know what’s covered.
Important Disclaimer on Home Equity Partner:
Home Equity Partner offers two paths to home ownership; Contract for Deed and Lease Options.
Contract for Deed – the tenant buyer is responsible for home insurance.
Lease Options – covered by Home Equity Partner
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