Unlike driving a car, you can legally own a home without homeowners
insurance. But, if you have bought your home and financed the purchase
with a mortgage, your lender will most likely require you to get
homeowners insurance coverage. That’s because lenders need to protect
their investment in your home in case your house burns down or is badly
damaged by a storm, tornado or other disaster.
If you live in an area that is likely to flood, the bank will also
require you to purchase flood insurance. Some financial institutions may
also require earthquake coverage if you live in a region vulnerable to
earthquakes. If you buy a co-op or condominium, your board will probably
require you to buy homeowners insurance.
After your mortgage is paid off, no one will force you to buy homeowners
insurance. But it is not advisable to cancel your policy and risk
losing what you’ve invested in your home.
0 comments:
Post a Comment