I don't really know anything about buying homes, but I'm considering buying my first house. I've heard that you have to have home owner's insurance. Do you really have to get it or is it just an option?
2007-01-17 12:36:12 · 15 answers · asked by Anonymous in Business & Finance ➔ Insurance
All of the previous answers are CORRECT!!
And even if you pay for the house in cash....the cost of home insurance is just pennies on the dollar.
Shop the price w at least three companies, & consider having a deductible of at least $500. That will keep the cost down.
2007-01-17 12:59:12 · answer #1 · answered by SantaBud 6 · 0⤊ 0⤋
It's an option.
Homeowners insurance is the CHEAPEST way to satisfy the insurance requirement if you are going to have a mortgage. If you don't have a mortgage, of course, no one is going to require you to insure the house - because if it burns down, well, tough luck. If someone slips on the sidewalk, get ready to write a big fat check!!
But if you have a mortgage, and don't WANT homeowners coverage (which gives you liability and contents coverage, also), you can always buy a straight dwelling policy (which should cost about 25% more, and ONLY covers the house) to make the mortgage company happy.
2007-01-17 13:52:38 · answer #2 · answered by Anonymous 7 · 0⤊ 0⤋
If you are financing the home then you need home owners insurance. The lender requires it and it is important to protect your home. All you need to do is go to a local insurance agency and ask them for a quote once you find a home and have an accepted offer on the house.
2007-01-17 12:55:40 · answer #3 · answered by NH Realtor 2 · 0⤊ 0⤋
If you pay cash for the house and have no mortgage, then you can buy it or not, although with that much of an investment it would be really smart to carry insurance on the house and its contents.
However if you borrow to buy the house, most mortgage lenders will require you to purchase insurance and will not agree to finalize the lending agreement until they see proof of insurance. They want their investment protected.
2007-01-17 12:51:40 · answer #4 · answered by Kraftee 7 · 0⤊ 0⤋
If you owe on the home than the bank, or who ever finances the home requres that you have insurance and the insurance has to be enough to cover the loan if the home should burn. Also, this protects your personal items. Also, if the home is found to be in a flood zone you will also have to have flood insurance and this is a separate policy from your homeowners policy.
2007-01-17 18:34:17 · answer #5 · answered by Debbie H 3 · 0⤊ 0⤋
If you plan to get a mortgage, the mortgagee will require the house be insured. Unless you are so well off that you can afford to pay cash for your home and have the means to completely rebuild it (and replace all your contents) should it completely burn down, Homeowner's Policies almost always cover liability as well.
2007-01-17 12:53:43 · answer #6 · answered by Gambit 7 · 0⤊ 0⤋
Source is a link to the Insurance Information Institute.
2007-01-17 12:48:39 · answer #7 · answered by 2Negative 6 · 0⤊ 0⤋
Put it this way, would you loan money to someone
to buy a car, if they had no insurance on the car?
Banks want to protect the collateral, and require you to have insurance on the house.
2007-01-17 13:23:45 · answer #8 · answered by jeffpa 2 · 0⤊ 0⤋
You have to have it if you have a mortgage--your mortgage company mandates it. Once you pay off the mortgage, if you don't want it you don't have, but what happens if your house burns down? How would you rebuild? You would still owe money for a burned down house.
2007-01-17 13:48:25 · answer #9 · answered by bundysmom 6 · 0⤊ 0⤋
Usually when you buy a home the lender will make it manditory for you to carry insurance... sometimes it is added right into your payment. good luck
2007-01-17 12:40:02 · answer #10 · answered by sushihen2 3 · 0⤊ 1⤋