It’s no secret that homeowners insurance is important. But if you can’t afford it, can you still own a home? Some people believe that it is mandatory, while others think that it is only necessary if you have a mortgage. The truth is, homeowners insurance is not mandatory if your house is paid for, but there are some things you’ll need to keep in mind. Here’s what you need to know when deciding whether to get homeowners insurance.
Is Homeowners Insurance Required?
It may seem like a no-brainer that homeowners insurance is required, but in some cases it’s not. In Canada, you’re not required to purchase home insurance if your house is fully paid for. However, purchasing home insurance is necessary for getting a mortgage. But even if it’s not required by law, there are plenty of reasons why having homeowners insurance is a good idea.
When Do I Need to Get Homeowners Insurance?
No one ever thinks about homeowners insurance until they need it. And by then, it’s often too late. You may be wondering when you actually need to get a policy for your home. The answer isn’t always simple because it depends on many factors.
In general, most people should consider getting homeowners insurance when they buy their home. Review your specific circumstances with an insurance agent to be sure. Homeowners insurance can provide peace of mind in the event of a loss, so it’s important to understand your coverage and make sure you have the right policy for your needs.
Do I Need Homeowners Insurance After I Pay Off My Mortgage?
Your house is paid off – congratulations! You may have reached the point where you’ve paid off your mortgage, and are wondering if you still need homeowners insurance. The answer is yes, you should still have homeowners insurance even after paying off your mortgage. The fact is, there is no hard and fast rule about whether or not you must have homeowners insurance if you are the owner of a property with no mortgage.
However, most lenders will require some form of homeowner’s coverage in order to approve your loan. This is because the lender wants to be sure that they are protected in the event that something happens to the property and they need to foreclose on it.
What Will Happen If My Home Is Damaged and I Don’t Have Homeowners Insurance?
If your home is damaged and you don’t have homeowners insurance, you could be in for a world of trouble. Depending on the extent of the damage, you may have to pay for repairs out of your own pocket. You could be on the hook for tens, or even hundreds of thousands of dollars in repairs. Homeowners insurance is there to protect you from exactly that kind of situation. So make sure you are fully protected by getting insured today. Your family will thank you later.
Looking For a Home Insurance Policy?
A good home insurance policy is essential to ensuring you and your home are protected, and to secure a mortgage. Not all policies are created the same, that’s why it’s important to do your research to make sure your home insurance suits your needs. At the Ingram Mortgage Group, we partner with Nuera Insurance, an insurance company that allows you to shop for coverage completely online. If you’re looking to purchase home insurance without the stress, get started on a home insurance quote!