What Could Happen if You Fail to Take Out Home Insurance?

If you own a home, it’s crucial to make sure that your property is protected with homeowner’s insurance. The fact is, homes are very expensive, and for many families, they are their most valuable asset. If you’re looking for home insurance, it’s wise to partner with an insurance agent who can explain the ins and outs of different plans. Visit Boss Insurance Agency, serving the greater Kingwood, TX community, to learn more.

The Consequences of Skipping Homeowner’s Insurance

First, Homeowner’s Insurance is required in some situations, and failing to take out an insurance policy could result in a breached contract. Often, when lenders offer mortgages, they will require that the home be insured. Why? Doing so lowers risks for the lenders.

Mortgages are typically secured loans, and the house purchased acts as collateral. If a homeowner falls behind on payments, the bank or other lender could take control of the house. Then the lender could sell the home and recoup at least some of their funds. If the property is damaged, however, say by a severe weather event, the value of the property will decrease. This means the bank may not be able to recoup as much money.

Further, for many people, their home is their most valuable asset and a crucial component of their nest egg. If an uninsured home is destroyed, it could quickly wipe out a family’s wealth.

Many home insurance plans will cover more than just damage to the home. In some cases, homeowner’s insurance will cover costs if someone is injured on your property. If a guest slips on a flight of stairs, your policy may cover medical bills and the like. If you don’t have homeowner’s insurance, you might have to pay these costs out of pocket.

Reach Out To Us

It’s crucial to study each homeowner’s insurance policy closely to see what is covered. Contact Boss Insurance Agency in Kingwood, TX to learn more.