If you’re a homeowner, you’ve probably grumbled at least once about how much you’re paying for insurance. But have you ever wondered what the consequences might be if you didn’t have to get coverage for your home? While you might think that’s you’re better off skipping insurance altogether, there are serious ramifications when you skimp on home insurance.
You’ll violate the terms of your mortgage
If you check your home mortgage document, you’ll find a clause that clearly requires you to get home insurance. Violate this clause, and you may find yourself facing foreclosure. More likely, however, the lender will simply take out an insurance policy on your behalf and bill you for it. When this happens, you lose the chance to go through policy options and you won’t have a say on how much you should pay.
Risk of litigation
Believe it or not, homeowners are legally liable for any accident that happens on their property. If someone slips on your driveway or if your dog bites the mailman, for example, the injured parties have every right to sue you. As you might know, litigation is an exhausting and expensive endeavor, one that homeowner’s insurance will spare you from. Without it, however, you’ll have to pay for all costs out of pocket.
No protection against disasters
Earthquakes, floods, or fires—there’s no telling what calamity might befall your home. However, you can protect your home from these disasters by getting insurance against them. Yes, it will cost a bit more than a standard policy, but consider the losses you’ll net if a disaster were ever to destroy your abode. Without a solid home insurance policy, you have no protection whatsoever from any calamity.
No coverage against burglaries
About two million homes are burglarized each year, resulting in around $2,250 dollars of losses per household. If you have the appropriate home insurance policy, your insurer will reimburse you an amount equivalent to the valuables that were stolen, saving you a ton of money in the process. If you have valuables in your home such as antiques, heirlooms, or jewelry, then home insurance is even more important.
Indeed, home insurance is a must-have home because of the many protections it offers. Luckily, getting home insurance in Atlanta doesn’t have to be expensive. With the help of trusted brokers, you can find a policy that suits your needs and fits your budget.
The Effects of Having No Homeowners Insurance, SFGate.com
Risks of Not Having Homeowners Insurance, TheNest.com