When to get homeowners insurance

If you have a mortgage on the home and a mortgage lender is involved, more than likely you will need have homeowners insurance before closing on your new property. This requirement is set up between you and the mortgage company. Your lender usually wants you to carry enough homeowners insurance to cover all damages if the worst were to happen. 

Having home insurance isn’t something that’s typically mandatory by state law. The agreement between you and your lender is set in place and enforced by the lender. Basically, they want to make sure their investment is protected and your home can be rebuilt or repaired back to it’s original form if needed. 

If you do not have a mortgage on the home and the house is free and clear, depending on the state you live in it is up to you whether or not you carry homeowners insurance. This can vary from state to state so if you have questions always refer to a local insurance agent well versed in the rules of your state. 

If you’re in California and have questions regarding homeowners insurance, or you’d just like to look into getting a new policy. Please give us a call! All of the agents at Eugene C Yates Insurance Agency are experts when it comes to home insurance. Additionally, they have access to some of the best home insurance companies in the industry! This gives them the ability to offer you the absolute best rates! Call today 916 313 6100

Homeowners insurance protects you and the mortgage lender

When you get homeowners insurance you’re purchasing an insurance policy that protects you from financial ruin and the lender from a possible foreclosure. Home insurance can protect you from an unexpected pipe burst or even a fire. Instead of paying out of pocket for these expenses, your insurance company will pick up the tab. 

You will still more than likely have a deductible. A key thing to keep in mind with home insurance deductibles is the higher the deductible, the lower the home insurance premium. On the flip side the lower the home insurance deductible, the higher your rate will be. 

It can sometimes be a good idea to take the higher deductible so you can capitalize on the savings. Please make sure you have money set aside incase the worst were to happen. With this option it would require more out of pocket expenses if damages were to occur. 

The mortgage lender also appreciates you having a good home insurance policy. They want to know their investment is protected and that if the worst were to happen, you can always rebuild or repair your home. Keep this in mind when exploring rates as well. Larger homes tend to come with higher home insurance premiums. The larger the risk, the higher the rate usually is. 

Having homeowners insurance is the smart choice

Our homes can be the largest investment or purchase we may make in our lifetimes. Make sure it’s properly protected is always a wise decision. Having the right coverage can make all the difference. You should have the peace of mind in knowing you’re covered in the event your home is destroyed. 

If someone is hurt on your property and you are sued, homeowners insurance can cover medical bills and legal fees. As you can see home insurance comes with a variety of benefits and can help you in multiple ways. And having it can ultimately be the smart choice, even if you don’t need it. 

Wrapping up; If you have additional questions regarding home insurance or would like to look into getting a new policy, give us a call. A professional home insurance agent can be reached at 916 313 6100