May 19, 2020
While not many, if any, U.S. state laws require you to carry property insurance, they do often require some form of liability insurance.
If you have a home and a mortgage, your lender will require you to have homeowner insurance. If you don’t have a mortgage, it’s a good idea to protect your investment by buying homeowner insurance.
When determining how much homeowner insurance you need to protect your home, it is best to contact your insurance agent, as they are professionally trained to assess your coverage needs.
The replacement cost of your home is generally the amount you insure your home for - it's a calculated value and is based on the specifics of your home.
Be prepared to provide the following information about your home:
Your bank needs you to have adequate insurance coverage to secure your home investment. They may also allow you to name them on the policy as the holder of the relation.
If you don't have coverage when you first fund it, the bank will receive force-insurance to shield it from any losses.
If you have coverage and lose it, it's important to get coverage as soon as possible. Otherwise, the mortgage company is going to buy it for you and it is going to be expensive.
The causes of property destruction that are typically not covered are:
On the other hand, The types of destruction which are typically covered include:
