Home Insurance – Homeowners Insurance – Property Insurance
If you own a home then you have a vested interest in protecting it. Besides the fact that you have put thousands of dollars and lots of time into maintaining it, your family lives there, and it is your home. Homeowners Insurance is an easy, relatively inexpensive way to ensure that your home and your possessions remain safe in the event of an emergency; however, few people take the time to fully explore their options in this department. You deserve a round of applause for taking this step and learning more about this extremely important insurance!
Is Homeowners Coverage Required in Tx?
When you take out a mortgage to purchase a home in New York City your lender will require that you purchase Homeowners Insurance. However, in most cases you have the freedom to choose the company you receive the insurance from. This allows you to compare premiums from different companies and choose the policy that best fits your needs. There is perhaps only one situation in which you would not be required to purchase coverage: if you own your home free and clear, with absolutely no loan out for it. In this case the option to have Insurance is completely up to you. You will likely find, however, that the benefits of protecting your home outweigh any negatives that may deter you.
What does Homeowners Insurance Generally Cover?
Homeowners Insurance provides protection against loss of or damage to property within your household. In the event of a broken water pipe or a burglary the cost of damaged or stolen property would thus be refunded to the policyholder. Homeowners Insurance also covers any external damage that occurs as a result of fire, water, wind, or natural disaster. So if a huge windstorm causes a tree to fall on your roof the Insurance Company would pay for the repairs needed. In addition, most policies include liability coverage, which protects you from being liable in the event that the neighbor’s 93 year old grandmother slips on the sidewalk in front of your home. All of this coverage is generally lumped together in a single package, allowing you to pay only one monthly premium as you rest soundly knowing that your home is protected.
What are the Risks if I do not have coverage?
Since Homeowners Insurance is required by New York City mortgage lenders you will likely not find yourself in this situation for many years. However, if you do own a home free and clear, you should be aware of the risks associated with not having a Homeowners Insurance policy. In the event of an emergency – a house fire, for example – you will have to pay every cent of the damages out of pocket. If Johnny from across the street rides his bike on your driveway, slips and falls, and his parents sue, you will be responsible for all of your lawyer and court fees. No New York City Homeowners Insurance means that you pay for every broken pipe and every break-in. In the best case scenario you will simply have to shell out money for minor damages. In the worst case (a house fire, for example), the lack of Homeowners insurance could financially devastate you.
How Can I Lower my Premiums?
There are a number of ways to save money on Property insurance. Most commonly people save by purchasing their Homeowners and Auto policies from the same insurance company. If you do this you will receive a multiple policy discount. Another common way to save is through raising your deductible. While this may sound undesirable, if you don’t anticipate many damages occurring in your home, the money you save monthly will more than make up for the extra couple hundred you have to pay in the event of an emergency. Protecting your home with dead bolts, smoke detectors and burglar alarms also tend to yield a discount on monthly premiums. Plus, if you maintain a good credit record and stay with the same insurance company over a long period of time your premiums may well go down in years to come simply because you have proven yourself.