Many people that are in the final stages of buying a home often wonder about the requirements for homeowners insurance, and if they even need to get it at all. Your property is one of your most valuable investments, and homeowners insurance helps you protect that asset. If you are buying a home in Mount Pleasant, South Carolina, and have questions about homeowners insurance, Lucey Mortgage Corporation can help. Read on to better understand homeowners insurance and how it works.
Do I Need Homeowners Insurance When Buying a Property?
The purpose of homeowners insurance is to protect both your home as well as your belongings from damage and theft, and it also provides liability coverage in the event of an accident on your property. Although homeowners insurance isn’t legally required, your lender will require you to have it if you take out a mortgage to finance your home. Homeowners insurance protects the mortgage lender by covering any costs needed to rebuild or repair a home in the event that it is damaged. Purchasing a homeowners insurance policy is critical when buying a home because it protects your most valuable investment.
How Does Homeowners Insurance Work?
When you go to apply for a mortgage, you will need to provide proof of homeowners insurance before a lender will loan the money to purchase a home, so it is important to research the various types of available homeowners insurance before your closing date. The earlier you begin to shop for homeowners insurance, the more familiar you will become with your options and the better you will be able to understand what type of policy you truly will need. Being prepared and familiarizing yourself with your homeowners insurance policy will also protect you from any delays with the closing on your home. When you are deciding how much insurance you will need, you will want to take into account both the value of your home and your possessions. You will need to make sure you have enough coverage to fund the cost of rebuilding your home in the area it is located if it is destroyed or damaged. You will want to take inventory of all your personal possessions, including furniture, electronics, appliances, etc. in order to estimate their worth and replace them if they are damaged or stolen.
Getting Help With Homeowners Insurance
Deciding on a homeowners insurance policy can be nerve-racking because it adds a significant expense when buying a home. It is important to note that although it can be stressful, having a good homeowners policy is worth the cost because it protects you from paying for any damages out of pocket. If you are buying a home in Mount Pleasant, South Carolina, and need assistance choosing your homeowners insurance policy, contact Lucey Mortgage Corporation today for a consultation.