When buying a home, there are several costs associated with the purchase, and it can sometimes be confusing trying to understand all of the necessary requirements, and this also applies to homeowners insurance. Many potential homebuyers wonder if it is optional or if it is something that is required when you purchase a property. Your home is one of your most valuable assets, and homeowners insurance helps to protect that asset. If you are buying a home in the areas of Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, and have questions about the requirements when buying a home, Foundation Mortgage can help. Read on to learn more about homeowners insurance with your financing options.
Do I Need Homeowners Insurance?
Even though homeowners insurance is not technically required, mortgage lenders will typically require it before lending you money for a loan. Mortgage lenders require homeowners insurance in order to protect them if the home becomes damaged and needs to be repaired or rebuilt. Homeowners insurance protects both your home and your possessions from any damages or losses from theft and provides liability coverage in the event that an accident occurs on your property. Therefore it is important to have a policy so that you are fully protected if any issues with your home arise.
Obtaining Homeowners Insurance
You will want to be prepared to provide proof of your homeowners insurance policy to a lender when you begin to apply for mortgages in order to receive home financing, so it will be necessary to start researching different homeowners insurance options before you actually close on a home. When you are evaluating the amount of insurance that you will need, you will want to account for both the value of your home and your possessions, and estimate how much it will cost to possibly rebuild your home if it becomes damaged or destroyed. When estimating the value of your possessions, you will want to include the cost of furniture, electronics, appliances, etc. so that they can be replaced if they are damaged or stolen.
Getting Assistance When Deciding On Homeowners Insurance Policies
It can sometimes be challenging to determine the most suitable homeowners policy for your situation, because it is an additional cost in an already expensive endeavor. Even though it can be costly, homeowners insurance is beneficial because it gives you the peace of mind that you are protected if any issues arise with your home or your valuables. If you are interested in buying a home in Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, and want to learn more about your home financing and homeowners insurance options, contact Foundation Mortgage today for a consultation.