Homeowners insurance isn’t legally mandatory in the state of Texas, but that doesn’t mean it’s something you should do without. A common homeowners insurance myth is that it’s optional to have coverage in every situation, but that’s not the case at all. Unless you own your home outright, then you may be required to purchase homeowners insurance under certain circumstances. If you’re still paying off your mortgage, then your lender or financial institution has the right to stipulate in your payment contract that you must have minimal or comprehensive coverage, so that their assets are protected in the event of an incident or if you default on your payments.
However, the law also states that your lender or financial institution can’t stipulate that the value of your insurance coverage exceeds the value of your home or dwelling. And, once your mortgage is completely paid off, you have the option of cancelling your homeowners insurance plan altogether.
Aside from meeting your contractual obligations to your financial institution or mortgage lender, there are several other important reasons why you should consider purchasing homeowners insurance in Mansfield, Texas. Continue reading to learn more.
Homeowners Insurance Protects Your Home and Your Assets
Life is often unpredictable and that means that anything can happen at any given time. Even if you don’t have comprehensive homeowners insurance, there are a few basic coverage options that you should, at the very least, consider getting if you’re living in Texas. Natural disasters like flooding are a common occurrence in the state of Texas, especially if you live in a flood zone or a region that’s prone to flooding. In fact, flood and natural disaster protection are the two most common types of homeowners insurance in Texas for that reason. Without it, you run the risk of having to pay completely out of pocket in the event of an unforeseen incident. It’s better to be safe than sorry.
You’ll Be Left without Liability Coverage
Liability coverage essentially legally protects you and your assets in the event that an incident, accident, or injury occurs on your residential property. If you don’t have adequate home insurance in Mansfield, Texas, then you’re liable to pay for the damages including structural destruction and personal injuries out of pocket. Plus, these are incidents that could also open you up to a lawsuit for which you’d also be financially responsible. For a lot of homeowners, the cost of paying out of pocket for personal, structural, and legal damages can be financially devastating. Think of your home as the valuable investment that it is and homeowners insurance as the much-needed protection for that investment.
You Will Have to Act as Your Own Insurance Agent
While there’s nothing wrong with being well informed about your insurance policy options and stipulations—in fact, it’s highly encouraged that you educate yourself on these matters for your own sake—you still need an experienced insurance agent on your side to guide you through the process. A Farmers insurance agent in Mansfield, Texas can review your requirements and help you choose the right insurance policy that covers all or most of your needs without exceeding your budgetary limits. Homeowners insurance should be equally affordable and reliable, so that you can have the peace of mind you need to continue living your life.
Your Risk of Foreclosure Increases
If you’re still paying off your mortgage, then your financial institution or lender has a lien against your property. Basically, a lien is a legal claim against your property which entitles the financial institution or lender to foreclose on your property if you default or fall behind on your payments for any reason. In the event of a financially devastating catastrophe like a natural disaster, fire, flooding, or a personal injury lawsuit filed against you, homeowners insurance could be your saving grace. Paying out of pocket for these types of incidents doesn’t just put you at great financial risk, but it also puts the people lending you money at risk as well.
Since their main goal is to protect their investment, they can move forward with foreclosure proceedings if you decide to prematurely cancel your insurance before completely paying off your mortgage.
You Won’t Have Any Lawsuit Protection
When property owners fail to take good care of their properties, things can go south quickly. Property maintenance is essential because it ensures that the structure of your home is in tiptop condition and completely safe for other people. This extends to the exterior of your property as well. If someone happens to suffer an injury on your property due to your negligence or lack of maintenance, then they have the right to file a personal injury lawsuit against you. Under such circumstances you could be liable to pay for their legal fees as well as their medical care. Without homeowners insurance coverage, these costs could be financially debilitating, which puts you and your family at great risk of losing your home in the process.
No Financial Recovery or Coverage for Personal Effects
As valuable as your home is to you, the items you own can sometimes be just as sentimentally valuable. Many people own priceless family heirlooms that understandably can’t be replaced should they ever get destroyed in a fire or stolen. However, contents insurance can guarantee that you’ll at least get some recompense for the lost or damaged items, which is still better than not getting anything at all. Under a comprehensive contents insurance policy, you can be compensated for the value of the lost items, which makes it a little easier to get through the tough times.
At Farmers Insurance – Crystal Schuder Agency, we’re committed to helping homeowners in Mansfield and other counties across Texas get the right insurance coverage for their specific needs. Aside from your family, your home is your greatest asset. It’s not just where you live, it’s also where you make your most precious memories and nothing can ever replace it. That’s why you need to protect it as best you can. We can help. Contact us today to learn more.