Homeowner’s insurance is a tool and service, which helps you as the homeowner protect yourself against devastating loss. Should your home experience large-scale, expensive damages such as a fire, flood or natural disaster, the insurance policy would provide money to repair or even rebuild your home. So, what’s at risk when this insurance lapses?
First of all your own pocketbook is at risk. Home repairs for large-scale damages are not usually something that most families simply have sitting around in the budget every month. The truth is most people are not prepared financially to handle large-scale emergency expenses. Should your home experience any large-scale damage during the time of the insurance lapse, then all repairs would come out of your own pocket. This would be devastating for most families.
Many people do not realize that as a homeowner you are legally responsible for injuries which take place on your property. If someone were to get injured and chose to sue you as the homeowner, you would be legally liable. Your homeowner’s insurance policy insures against this as well. So even in a worst case scenario, your policy would pay any expenses incurred by someone’s injury.
Many mortgage companies require that home have an active insurance policy in place. If you allow your insurance to lapse, then the mortgage company will force place insurance on the home. In most cases, this insurance premium will be very expensive and completely out of your control. You will not be able to choose the company or shop around for the best deals. You will also not be eligible for any discounts.
The best way to protect yourself from these risks is to always make your homeowner’s insurance a priority. If you would like to discuss homeowner’s insurance call one of our friendly representatives today at Insurance Solutions Inc. serving Cullman, AL.