If you take out a mortgage to purchase a home in Flushing, MI, your lender will almost certainly require you to purchase homeowners insurance. But what happens when you’ve paid off the loan? Do you have to maintain your coverage?
Homeowners insurance is not intended to be a means for a mortgage lender to charge you additional money. It’s an essential piece of insurance that will cover your home, valuables, and overall financial security from a plethora of damage hazards and other obligations. That is why you must keep coverage even after you have paid off your mortgage.
Here at Bachmann Insurance Agency, we’re more than happy to help answer your question. Here are a few reasons why a home without a mortgage still needs to be insured.
Mortgage-Free Homes Are Still Valuable
Just because you don’t have a mortgage doesn’t mean your property isn’t still a valuable investment. After all, you’ve spent years paying off the mortgage, maintaining it, and improving it, and you want to be ready to repair or rebuild your house in the event of a catastrophe. You may not have the resources to do so if you do not have homeowners insurance.
Damage can still be costly.
Home insurance can assist any owner in receiving financial support for the costs of a variety of devastating occurrences like fires, bad weather, or vandalism. As a result, if a major windstorm damages your roof and siding, your home insurance can pay for the necessary damage rather than leaving you to deal with it all on your own.
Home Insurance Is About More Than Just Damage
Finally, home insurance is more than just coverage for the value of your property. It can protect against a range of additional cost issues by providing various other benefits:
Possession coverage insures your possessions in your house in the event of loss or damage.
Living expenses coverage will assist you with paying for food, hotel, or other bills that may emerge as a result of an injury that compels you to temporarily relocate from your home.
Liability insurance protects you and your family if you cause property damage or injury to someone who does not reside with you. As an example, if you hit a baseball through a neighbor’s window and into their china cabinet, this coverage may assist you in recouping your damages.
Reach Out To Us!
If you have any questions about home insurance in the greater Flushing, MI region, contact us at Bachmann Insurance Agency today to figure out a home insurance policy that meets your needs as a homeowner. We’re here to help however possible and are ready to create your quote today!