Contributed by Elizabeth Grepp
For most homebuyers, the purchase of a home will be the biggest investment that they’ll make in a lifetime. This means that homeowner’s insurance is one of the most valuable and broadest kinds of risk coverage that can be purchased. Homeowner’s insurance can cover everything in your home and everything that’s important to you.
Sometimes, navigating the world of insurance can be overwhelming. That’s why Howard Hanna Insurance is here to answer some of the most frequently asked questions that we receive regarding this key type of insurance.
Question: Do I really need homeowner’s insurance?
By law, you are not required to have homeowner’s insurance. However, if you decide to finance your home through a mortgage lender, including Hanna Financial, you’ll be required to have it. Your insurance is protection against the many property and liability risks you can face as an owner. If you are not buying homeowner’s insurance, you are “self-insuring.” Besides, the unexpected sometimes happens, and the peace of mind that’s provided by having insurance is second to none.
In addition to having homeowner’s insurance, umbrella coverage is an important policy to have as a homeowner. Umbrella coverage gives additional liability protection and helps you to protect your assets. A home is the largest asset most people will ever own. Every homeowner should have at least a $1 million umbrella policy to provide liability coverage beyond the limits of their automobile and homeowner’s insurance policies…even if you have less than $1 million in assets. In the event you are sued, you could be forced to pay a legal judgment from your current assets and possibly future earnings. The policy can also pay for defense costs, which can quickly add up even if you win your case. It’s an inexpensive way to protect your finances from devastating lawsuits.
Question: What does my homeowner’s insurance policy cover?
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