Most homebuyers realize they will need home insurance to protect their investment in the O’Fallon, MO area, but some want to save the money. They may live on a tight budget and want to use the money another way. Senn Insurance Agency wants you to understand why you need this vital coverage.
In some situations, though, your lender will require you to buy home owner’s insurance or allows another organization to do so. In most states, when you obtain a mortgage to buy a home, the bank typically requires you to carry a homeowner’s insurance policy until you pay off the mortgage. This process reduces the bank’s risk of losing the money loaned while protecting your investment. Once you re-pay the bank, you could theoretically drop your policy, but that is a bad idea.
Your home policy covers your home’s structure, so if a tornado strikes it, the insurance company provides the funds for repairs or rebuilding. It also protects the items inside it, so if a thief steals your TV and stereo, your insurance company issues you a check so that you can replace them. Your policy also provides liability coverage, so if your mother-in-law slips on your front steps and sprains her ankle, your insurance pays her medical bills.
This handy insurance helps protect you from loss in many ways. It also protects the items in your yard, garage, workshop, pool house, etc. Your fences, mailboxes and, other landscaping items also receive protection. The liability protections extend to these as well. If you have a pool or trampoline, the liability component of this coverage increases in importance.
Contact Senn Insurance Agency serving O’Fallon, MO to learn more about when home insurance and when you must obtain coverage.