Whether you’re just starting your first home or coming to the end of your 30-year mortgage, it’s important to know how your mortgage and homeowner’s insurance are connected. Numerous factors can influence both. However, they are also intertwined in ways that may make it difficult to wrap your head around them. Today, the Infinityhub Insurance Agency LLC team in California will be taking a closer look at this relationship.
Is Homeowner’s Insurance Required?
In short, it depends. The lender typically requires homeowner’s insurance if you have taken out a mortgage on your home. However, if your home is paid off, you are not legally required to have a policy. But be sure you fully understand the consequences of not having insurance on your home and belongings. Should a disaster occur on your property, paying for the repairs is up to you.
Do You Need Homeowner’s Insurance if Your Mortgage Is Paid Off?
As mentioned above, if you no longer have a mortgage on your home, there are no legal repercussions for not having homeowner’s insurance. On the other hand, should a guest sustain an injury at your home, you could be held responsible for the injury and any personal injury compensation involved. Should a fire, tornado, or other event befall your property, you will also be left paying for all the repairs and the replacement of your items out of pocket.
Looking for the Perfect Homeowner’s Insurance Policy? The Infinityhub Insurance Agency Can Help!
Homeowners insurance protects your home, its contents, and even you as the homeowner. Though having insurance while paying for your mortgage is important, once your mortgage is paid off, it may be even more vital to your financial well-being. Please don’t wait until it’s too late. Contact our team of insurance professionals in California today!
