Homeowners Insurance is a vital protection for homeowners to have in the event of a catastrophe. While there are circumstances where people do not have to carry this insurance, it is never advisable to have an uninsured home.
Depending on where a person lives in the country, certain coverage for the home may be more of a priority than in other regions. However, insurance companies may have higher premiums for certain coverage in high risk areas.
Most homes that have a mortgage require that the homeowner have insurance to cover the property in the event of a cataclysm. The deductibles may vary in these cases, but in general terms there are some basic requirements that are necessary for homeowners insurance. This is to provide protection for the mortgage company in the event of major structural damage since they have their money secured in the home. Depending on the mortgage company, they may require that the insurance premium be paid with the mortgage payment. In this case the mortgage company pays the premium to ensure that there is no lapse in coverage.
Above and beyond the general guidelines of homeowners insurance, banks may require more specialized coverage. This would be traditionally the case in high risk areas such as the California region for earthquakes, or the coastal areas of Florida, Alabama, Texas, and Mississippi, for hurricanes. These premiums may be high for property owners and this should be reviewed by a homebuyer before they solidify a contract to purchase.
Additionally, homeowner’s may wish to have additional coverage above and beyond the requirements in certain areas due to their concerns over potential threats of cataclysm. While mortgage companies do have base requirements for most properties to cover the mortgage value of the home, there is much room for things that may not be covered.
It is an unfortunate case when a homeowner realizes that their property is not covered for specific damage when it happens. From floods to downed trees and roof damage, there are many areas of a home that may have minimal requirements in a policy according to a mortgage holder. However, homeowner’s should read the fine print to understand what their policy covers and what is left open ended and uncovered that a homeowner may decide they want additional coverage for.
In general areas that are not at high risk for certain potential property damage, homeowners may have no requirement for that coverage by their mortgage company. However, with the current extreme weather patterns that seem to predominate across the country, it is certainly wise for homeowners to look at their policies with a fine tooth comb to ensure they have ample coverage for the potential threats that can occur.
With widespread storms of snow, rain, hail, heat, and wind that are in areas that are not accustomed to such extremes, it is important to realize that there is currently no “normal weather” for much of the country. No matter what area of the country a home is in there are extreme weather conditions that can arise and homeowners should consider these risks carefully when evaluating their homeowner insurance policies to ensure ample coverage is kept on the home.
Information on Home Insurance can be obtained in abundance from Homeownersinsurance.org .