The Importance Of Home Insurance

When buying and financing a house, you will be required to pay homeowners insurance until your loan is paid off. But what many homebuyers don 't always think about prior to putting a contract on a home is how much that homeowners insurance will cost. The cost of your homeowners insurance is usually split up and paid monthly along with your mortgage payment. Therefore, if you didn 't anticipate those extra costs, which could also include your property taxes and perhaps property mortgage insurance (PMI), if you didn 't put 20 percent down, then you might have just priced yourself out of that home because now you can 't afford the monthly payments. It 's extremely important to ask the question "how much is home insurance" before committing to …show more content…
Well, first of all, you are required to keep homeowners insurance on your house until the mortgage is paid off. But aside from that there are plenty of other events and maladies that could occur. There are losses such as: Fire, lighting, wind, hail, water damage, freezing, theft, debris removal, bodily injury, miscellaneous property damage, medical payments from injuries to others and so on. And here are a few other facts for you. Did you know that approximately one in 15 insured houses has a claim every year? And that approximately one in 30 insured houses experience property damage due to wind and/or hail every year? And did you know that one in 1,000 homeowners have liability related claims due to lawsuits for bodily injury or property damage? So as you can see, homeowners insurance covers more than what most people think it does and is pretty much essential if you own a …show more content…
If you buy a home that is in a flood zone, you will be required to buy and maintain flood insurance on that home. Flood insurance is not generally covered on your homeowners insurance policy and therefore must be purchased separately. In addition, flood insurance can be extremely costly depending on how close that house is to the water. One way to avoid this expense is to check and see if the home you are considering is in a flood zone or a location that will require flood insurance. If it is, and you can 't afford the flood insurance, then it 's best you find another house. Another thing to remember is that depending on the natural disasters and other events that occur each year, the cost of your flood insurance could increase drastically after an influx of natural disasters. Therefore, you will have to make sure your income can cover those increases should they