Homeowners insurance is not required by law like auto insurance is in Washington state. However, mortgage lenders may certainly require you to purchase a home insurance policy. Even though this is mainly because they want to protect their investment, it will also protect your home and your family as well.
Why Do I Need Home Insurance?
Homeowners insurance is important for multiple reasons. In fact, you may not even realize this, but your home insurance policy protects much more than just your home.
- Homeowners insurance protects your home.
The most obvious benefit of having insurance on your home is being able to protect it. Homeowners insurance is just simply one of the best ways to protect your house. In the event any damages are caused to your home, this type of insurance policy will be a life saver.
- Homeowners insurance protects your stuff.
Most home insurance policies also include what is called personal property protection. If you’ve ever asked, “Does homeowners insurance cover personal property?”, then you can thank this part of your homeowners insurance policy. Personal property coverage can help pay to replace your personal belongings in the event they happen to be damaged or destroyed in a covered loss. Not sure if this coverage is included on your policy? Give us a call or send us an email or text. We’d love to help answer your questions!
- Homeowners insurance protects you from legal fees.
Home insurance policies can also provide liability coverage for accidents that take place in your home or on your property. This is one of the biggest perks of having homeowners insurance. For example, if a visitor gets injured on your property and you are found responsible, you may be legally forced to pay thousands of dollars for a lawyer and lawsuit if you do not have homeowners insurance. Keep in mind that if you do have home insurance and decide to file a claim for any damages or accidents, you will most likely need to pay your deductible.
What Happens If I Don’t Have Home Insurance?
If you don’t have home insurance, then you will need to find an alternative way of protecting your home. For example, if a fire, storm, or some other event causes damages to your home, you’ll be left with either paying for the damage out of pocket or, in the worst-case scenario, losing the home altogether. Make sure you take the time to evaluate your situation. Having home insurance is one the best ways to cover the cost of repairing or replacing your home and your belongings in the event they are damaged by a covered loss.
Is Homeowners Insurance Required If Your House Is Paid Off?
Once your home is fully paid off, a mortgage lender no longer has any ability to require homeowners insurance from you. While homeowners insurance might not technically be required for homeowners who have paid off their mortgage, it is definitely not a good idea to just get rid of it. You’ve invested years into protecting your home and have finally paid it off. Think twice before getting rid of your homeowners insurance simply because you no longer have a mortgage.
PNW Insurance is a local and independent insurance agency here in Puyallup, Washington. If you have any additional questions not covered in this post please let us know. Want to review or revise your current home insurance policy? Request a quote online, send us a text or email, or give us a call and a member from our team will happily assist you!