Living Debt Free & Truly Wealthy, The found money specialist, United States
Home owners insurance is needed because of the mortgage. Any lending company wants to protect their investment (mortgage) if something happens to the person who owns the home. Think about it for a second if your lending someone 200,000 to buy a house and the house floods or burns down than you could lose your money.
Bottom line it's all about protection assets.
The real question is if you have home owners insurance when is the last time you used your deductible. If you haven't used your deductible in years than you should review how much your paying. If you have a low deductible than your paying too much, switch to a high deductible get savings and put that money towards paying off debt or increasing your savings.
This works as long as you have not needed to use your deductible. Ask your self this , is that money better off in your pocket or the insurance company?
Chief Encouragement Officer, Larsen Insurance Agency, Buffalo, NY
It is not "needed" unless a lender gave you money to buy the house - then it definitely is needed. But even if your home was paid for, if you had a dog (dog bites), have a pool (slip and falls) or entertain at home - then you'd want one to protect you from liability claims of other's. Plus, not only are your personal belongings covered at home, they are covered when traveling, in your car, at a hotel, on vacation or at a storage place. So it is really a smart consumer idea to keep a homeowner policy in place.
I’d like to expand a little on this question, sure your mortgage lender may require you to have some form of insurance coverage on your home but just good judgment would suggest you not be without this type of coverage.
Homeowners’ policies provide coverage in four principal areas;
Depending on the type of coverage you purchase, the policy most often would reimburse you should your home be damaged or destroyed.
It will often reimburse you should any of your personal property be damaged or destroyed (clothing, furniture and/or household items).
They can reimburse you for additional expenses you incur should your home be damaged and you are required to live in temporary quarters for a period of time while your home is being repaired.
These policies may also pay for an attorney to represent you should someone other than a family member be injured while on your property and indemnify you if a civil court finds you responsible for injuring someone or damaging their property.
Any responsible homeowner should consider securing this type of coverage. It beats digging into your savings after a storm, fire or after being served legal papers. And it beats waiting for the Red Cross to give you a shirt, a bed and a hot meal.
Chief Executive Officer, Coastal Homeowners Insurance Solutions, Rocky Point, NY 11778
Homeowners is required by the mortgage company to protect their investment and secure collateral in the event of a major catastrophic event at the residence. You are not "required" to purchase homeowners insurance if you do not carry a mortgage but it is a wise and prudential financial move. It's smart to spread risk through the insurance product. Hope this answers your question.
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Bottom line it's all about protection assets.
The real question is if you have home owners insurance when is the last time you used your deductible. If you haven't used your deductible in years than you should review how much your paying. If you have a low deductible than your paying too much, switch to a high deductible get savings and put that money towards paying off debt or increasing your savings.
This works as long as you have not needed to use your deductible. Ask your self this , is that money better off in your pocket or the insurance company?
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I’d like to expand a little on this question, sure your mortgage lender may require you to have some form of insurance coverage on your home but just good judgment would suggest you not be without this type of coverage.
Homeowners’ policies provide coverage in four principal areas;
Depending on the type of coverage you purchase, the policy most often would reimburse you should your home be damaged or destroyed.
It will often reimburse you should any of your personal property be damaged or destroyed (clothing, furniture and/or household items).
They can reimburse you for additional expenses you incur should your home be damaged and you are required to live in temporary quarters for a period of time while your home is being repaired.
These policies may also pay for an attorney to represent you should someone other than a family member be injured while on your property and indemnify you if a civil court finds you responsible for injuring someone or damaging their property.
Any responsible homeowner should consider securing this type of coverage. It beats digging into your savings after a storm, fire or after being served legal papers. And it beats waiting for the Red Cross to give you a shirt, a bed and a hot meal.