Owning a home is a terrific goal, but it comes with a lot of responsibilities like securing the proper insurance. Homeowners insurance is required when you have a mortgage, but what if your house is paid off or you let your insurance lapse? Here are four possible scenarios that could happen should you decide to forego insurance.
A Natural Disaster Could Strike
There are a lot of things you can protect your home against, but a natural disaster isn’t one of them. You have no control over a windstorm, wildfire or a lightning bolt and the results could be catastrophic. Having no insurance means you’re stuck with expensive repairs, or you could lose the house and everything in it.
You Might Get Sued for Injuries
If someone is injured on your property, it could turn into a nightmare situation if you have no insurance. Liability protection covers medical expenses for someone that’s hurt in your home and your insurance agency Newark DE can advise you on the proper amount to carry.
You Could Be Burglarized
Homeowners insurance not only covers your structure, it also covers the contents inside. Think about the valuables you own such as computers, TVs, expensive jewelry and antiques. If you’re the victim of a burglary and these items are stolen or destroyed, you’re out of luck with no insurance.
Your Lender Might Come Knocking
When you secured your mortgage, you agreed to insure the house. If you drop this insurance, the insurance company will notify your lender. In turn, you can bet your lender will contact you to either reinstate your insurance or suffer the consequences of being in default of your agreement.
You’re Taking a Risk
Buying a home is one of the biggest and best investments you can make, so don’t risk losing it all by not insuring it. Knowing that you’ll be compensated if the worst happens will allow you to fully take advantage of all the joys of homeownership.