Do You Need Insurance On Your Property?

by Chris Bohr 12/01/2019

You may know that when you buy a home, you should purchase homeowner’s insurance. You may have never wondered if the coverage is required. Usually, insurance will be taken out of escrow and a part of our monthly mortgage payment. You may pay a yearly premium separate from your mortgage payment. Home insurance is a nuisance so if you could find a way around it should you forego it?   


You can legally buy a home without a home insurance policy, but if the house is financed with a lender, the mortgage company usually requires that you have insurance on the property. A lender can also request that your home carry additional policies such as earthquake or flood insurance. There are minimums you must meet based on the value of your home and the lender you do business with. These standards exist so that you as the homeowner will have enough coverage to replace the property should it be a total loss in some type of natural disaster or fire.  


The amount of coverage you need depends on how big the mortgage is that you have taken out. There are certain supplemental coverages that may not be required yet are sensible to carry. These extra coverages include:


Personal liability coverage

Personal property coverage


The good news is that as a homeowner you have a choice. You can shop around and see which insurance companies will give you the best coverage for the lowest price. 


The bottom line is that you shouldn’t risk going without home insurance. Even if your loan company allows you to cancel your home insurance after a certain point, the risk is really not worth saving money. Without coverage or permission to cancel coverage, there is a chance your mortgage company could put your loan into default. 


High deductible, basic insurance policies are better than nothing. If you’re going to pay a premium for home insurance, you should look into getting the coverage that makes the most sense for you and your family. You don’t need over the top coverage amounts, but you should aim for comprehensive protection for your property. The key is to balance the cost of your insurance with the value of the property. If your house burned down, you’d want to know that you could replace your property without worry. If you didn’t have insurance, you could really face some issues. You may not want to pay for home insurance, but you genuinely need it. Make sure you understand your coverages.                

About the Author
Author

Chris Bohr

Hello, My name is Chris Bohr, I’m a lifelong resident of the Tampa Bay Area, married to a wonderful woman, Michelle “Missy” Bohr and we have a two year old son who is the apple of my eye. I’m a graduate of Countryside High School in Clearwater, Florida, a Graduate of the University of Central Florida, and an active Realtor and Auctioneer. You are looking for someone to help you to either buy or sell a home, liquidate the contents of a home, or perhaps do it all. I can help! …and I want too. As a member of this great community I’ve seen quite a few changes around these parts and can help guide you through the mazes of the Real Estate World. In addition to the various licenses I’m also a proud member of the Upper Tampa Bay Chamber of Commerce, the Pinellas Realtor Organization, Florida Association of Realtors, National Association of Realtors, won several business awards and was even named the honorary Mayor of Palm Harbor many years ago. Our approach to helping you sell your home starts with a global reach to find those buyers who may be sitting in a cold basement somewhere just looking for a reason to come down to the beautiful sunshine state and stop shoveling snow. In addition to the global reach, I also include the local, “Hey look at me” method of marketing by making your home visible to more potential buyers than most properties on the market today. If you are looking to buy a home, I understand it can be very intimidating, I take the pains away and remind you that buying a home should be fun and if you put the right person on the job I can promise to do my best to walk you through the hurdles of home buying. My approach is founded on experience, of course the experience of buying and selling houses, but also going through the processes myself and recalling the times when it was the most nerve racking. I keep you informed, I answer my phone, and I actually check emails and respond in a professional and courteous manner…I guess you could call that the Golden Rule. What sets me apart from other Realtors is the ability to handle not only your purchase or sale, but also having the ability to liquidate the contents, or lighten your load in regards to contents through our licensed and reputable Estate Sale and Auction Company. I love it here in the Tampa Bay area, and you will too. Drop me a line or give me a call, and let’s get the ball rolling toward your next move! Remember, Bohr Sells Homes, in fact that’s my website. www.BohrSellsHomes.com Thank you, Chris