While homeowners insurance is not a legal requirement in the United States, it can be and is likely to be mandated by the lender if you have a mortgage because this helps protect their investment. Generally speaking, before even funding your mortgage or refinance application, the lender will request proof of homeowners insurance. If you choose not to purchase insurance and have a mortgage, the Consumer Financial Protection Bureau allows the lender to purchase it on your behalf and charge you for the cost, which may result in a policy that is more expensive and/or offers less coverage than you need. For folks that have either paid off their mortgage or paid cash for their homes while you are not technically required to have insurance, your house is likely to be your largest investment, and a homeowner’s insurance policy will protect it in a multitude of ways. 

Typically speaking, a homeowner’s insurance policy will provide coverage for your home. Still, also it offers protection for your personal belongings, any other dwellings on the land like a shed, and medical bills if a visitor is injured while on your property or inside your home. Keep in mind that for each of the coverages you have, you will also select a limit, which means anything beyond that dollar amount is your responsibility. Hence, the more coverage you have, the less likely it is that you’ll be responsible for any out of pocket costs once your deductible has been met. 

At the Jason Ridley Agency in Colleyville, TX, our friendly team of insurance professionals are ready to find you the perfect homeowner’s policy for your needs, so give us a call today to schedule a no-obligation consultation and see how we can assist in protecting your home.