No one wants to pay more money to insurance companies than they have to. If you recently purchased your first home, you might have wondered why you need homeowner’s insurance in the first place. After all, unlike car insurance in Bucks County, you aren’t legally required to have insurance to own a home. Doesn’t that mean you can save money if you cancel your policy and take on the risks yourself?
While homeowner’s insurance isn’t a legal requirement to own a home, there are a number of reasons why you should buy or maintain a policy. Before you cancel your insurance, make sure you consider these factors.
- You can’t get a mortgage without it. Just because the law says that you don’t need homeowners insurance in Bucks County to buy a home doesn’t mean that mortgage lenders agree. Most mortgage contracts stipulate that you maintain at least a certain level of coverage under the terms of your loan. This means that, unless you want to pay cash for your home or risk losing your mortgage, you need to have insurance.
- Insurance protects you financially. On a month-to-month basis, the cost of insurance can seem like a lot. However, when you compare what you pay in premiums to the damage you can suffer from a fire, storm, or break-in, the financial impact is minimal. Consider what you would do if a fire caved in your roof tomorrow — would you have the cash-in-hand to fix it? Probably not. Homeowner’s insurance protects your family from disaster.
- It can give you some unique benefits. Most people have a rough idea of what their insurance protects them against, but homeowner’s insurance also has a number of little-known benefits as well. For example, did you know that many insurance policies cover your expensive belongings against theft even when you take them out of your home? Canceling your homeowner’s insurance policy can leave you vulnerable in a number of ways.
Do you need home, auto, or boat insurance? The Bachmann-Zeitlin Insurance Agency is here to help! Give us a call today at 267-327-4170 to get started!