Many mortgage companies require their borrowers to have home insurance. As a homeowner, you may be wondering if this is something you’re legally required to do or if your mortgage company is just trying to protect its investment. The answer, unfortunately, is a little bit of both. Knippenberg Insurance Inc. in Cumberland, MD is here to explain why you need homeowners insurance.
Why You Need Homeowners Insurance
Home insurance is not required by law, but many mortgage companies will not give you a loan unless you have it. That’s because your home is the collateral for your loan, and the lender wants to be sure that its investment is protected in case of fire, flooding, or other disasters.
If your house is destroyed and you don’t have insurance, the lender could end up losing a lot of money. That’s why most lenders require proof of home insurance before they’ll approve your loan. Even if your state doesn’t require it and your lender doesn’t strictly enforce it, getting home insurance is still a good idea.
How Much Coverage Do You Need?
The amount of coverage you need depends on several factors, including the value of your home, the type of home you have, and the number of personal belongings you own. It’s a good idea to work with an independent insurance agent to determine how much coverage is right for you. At Knippenberg Insurance Inc., we specialize in helping our clients find the right homeowners insurance policy for their needs. We’re here to help you every step of the way, from finding the right policy to filing a claim.
Get Home Insurance Today
Whether or not your mortgage company requires homeowners insurance, it’s still a good idea to purchase a policy. Homeowners insurance can protect your home and belongings in the event of damage or destruction. When shopping for homeowners insurance, get in touch with us at Knippenberg Insurance Inc. in Cumberland, MD, and we will help you find the right policy for your needs.
