Is Homeowner Insurance Required?

Find Out if You Need Homeowners Insurance

If you’re a first-time homeowner, one of the biggest questions on your mind might be about homeowner insurance. After all, it is an impressive milestone you’re hitting, and your home is one of the most significant investments you’ll make in your life. You wouldn’t want to risk losing everything you worked so hard to have, so having homeowner insurance is far more than just a good idea.

Do I Need Homeowner Insurance?

Home insurance is typically not required by law. Neither the state nor the federal government will require you to purchase homeowner insurance when you buy a house, unlike car insurance or health insurance.

However, that doesn’t mean that you don’t need home insurance. If you’re buying a home through a mortgage lender, they will likely require you to purchase homeowner insurance as part of the agreement. Your lender has a vested interest in your house, so they want to ensure they’ll be made whole if something happens to it.

The type of coverage the lender requires may differ according to the lender, location, and other factors. Lenders may require specific types of coverage depending on the location of your home, such as flood insurance and earthquake insurance.

Benefits of Home Insurance

Even if you don’t have to buy homeowner insurance, it’s still a good idea to have it. You might not want to think of something bad happening to the home you worked so hard to purchase and make your own, but that’s no excuse for not protecting yourself. It’s very clear that not having home insurance can have severe consequences.

For example, if a storm or a disaster damages your home and you don’t have the right insurance, you’ll have to pay to repair the damage yourself. If it’s a small amount of damage, that might not be so bad, but having to pay for major repairs could put you in a difficult financial situation. A severe enough disaster could destroy your home - and without home insurance, you’ll have no money to help you find a new place to live.

There are also a variety of policies you can purchase that will give you additional benefits. While these policies vary, some common types cover other structures on your property or valuables. These are a great way to safeguard not only your home but everything you store within it.

Need Homeowner Insurance? Call Vickers Insurance!

In short, homeowner insurance isn’t something that the law will require you to have, but the mortgage lender you buy the house with will probably have you purchase it. That said, even if nobody is forcing you to buy home insurance, financial experts recommend purchasing it to protect yourself and your future.

If you’re interested in learning more about home insurance or the plans that may be available, we here at Vickers Insurance would be happy to lend you our expertise! We have helped many in Odessa, TX and Midland, TX find homeowner insurance, auto insurance, and other insurance policies to protect themselves. Contact us today!