Are you interested in buying a home and wondering if it is necessary to have a homeowners insurance policy? Your home will likely be one of your most valuable assets, and homeowners insurance will help cover you financially from expensive damages and repairs, so it is definitely in your best interest to obtain this added protection. If you are interested in buying a home in Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, and have questions about homeowners insurance, Foundation Mortgage can help. Read on to learn about eight things first-time homebuyers should know about homeowners insurance.
Homeowners Insurance Offers Protection For Your Home
Homeowners insurance helps to protect your home and other structures on your property from any damages that may be caused by weather, storms, falling objects, etc.
Homeowners Insurance Offers Dwelling Coverage and Provides a Roof Over Your Head
Homeowners insurance can help provide you protection and cover the cost of living expenses in the event that your home becomes uninhabitable because of a loss covered by the policy.
Homeowners Insurance Offers Liability Protection
If you are sued because someone was injured on your property, homeowners insurance can provide liability coverage for filed claims.
Offers Protection While You Are On Vacation
Homeowners insurance can cover your personal property from damage or theft while you are away from your residence on vacation and traveling anywhere around the world.
You Could Be Eligible for Cheaper Plans Depending On Home Location
The insurance costs on your home can depend on where the fire department is located in your neighborhood. Ultimately, if you live closer to a fire station, you will more than likely pay less for homeowners insurance.
Possible Pet Coverage Restrictions
It is important to note that homeowners insurance can exclude pets from insurance coverage. Certain breeds of dogs or cats may be considered dangerous and not eligible for coverage.
Protection of Home Equity
Homeowners insurance ultimately protects you, your property, and the contents of your home. When you have paid off the mortgage, you will have 100% equity in the home, so homeowners insurance could be very important for your financial status. Additionally, If you are using a home equity line of credit to help buy the home, your property acts as collateral, so lenders want to ensure your home is in good condition, which will increase the equity of the home.
Homeowners Insurance Is Often Required By a Lender
In some cases, having homeowners insurance is actually required. If you plan on using a mortgage to purchase a home, most lenders require you to have a policy because it ensures that they are paid back if there is unexpected loss.
It is a smart idea to invest in a homeowners policy to ensure that you and your home are protected. If you need help understanding homeowners insurance in Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, contact Foundation Mortgage today for a consultation.