Many people who are in the final stages of buying a home often wonder about the requirements regarding homeowners insurance; is it required, or is it something that is even needed? Purchasing a home is one of your most valuable assets, and homeowners insurance helps you protect that asset. If you are interested in purchasing a home in Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, and want to know more about the ins and outs of homeowners insurance, Foundation Mortgage is here to help. We can work closely with you to help you understand your home insurance and financing options.
Is Homeowners Insurance Necessary?
The main purpose of homeowners insurance is to provide liability coverage in case an accident occurs on your property and to protect your home and your possessions against theft and damage. Although homeowners insurance is not technically required, if you plan on taking out a mortgage to finance your home, lenders will likely require it before they lend you money for a mortgage. Lenders require homeowners insurance because it protects them in the event that a home needs to be repaired or rebuilt if it is damaged. Essentially, obtaining a homeowners insurance policy is a good idea when purchasing a home because it protects one of your most valuable investments.
The Homeowners Insurance Process
When you begin to apply for mortgages, you will more than likely be required to provide proof of homeowners insurance to a potential lender in order to receive the necessary funds to purchase a home. Therefore, it is important to begin researching your insurance options before your actual closing date. It is important to take into account the value of both your home and your possessions when deciding on the amount of insurance you will need. When assessing the amount of insurance you will require, you will also need to remember that you will need enough to cover the costs of rebuilding your home if it is destroyed or severely damaged. You will also want to take inventory on your possessions, including appliances, furniture, etc. in order to estimate the worth of your property and replace all of your items if they are stolen or damaged.
Get Assistance With Homeowners Insurance Today
Choosing an appropriate homeowners insurance policy for your situation can be challenging because it is an extra expense in a home buying process that is already very costly. It is important to note, however, that obtaining a sufficient homeowners insurance policy is usually worth the cost and offers peace of mind. The actual cost of having to rebuild or repair a home out of pocket would far exceed the cost you would pay for an insurance policy. If you have questions regarding homeowners insurance policies in the areas of Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, and want to know the policies that would be the most advantageous for your situation, Foundation Mortgage is here to help. Contact our office today for a consultation.