It seems that having home insurance is not mandated by law. But in the long run, it might save you from a tonne of difficulty, much like buying sunscreen.
Do you have to have homeowners' insurance by law?
Homeowners' insurance is not required by law, in contrast to auto insurance, which is. However, most mortgage lenders will want some type of fundamental homeowners insurance and that is a fairly large however.
Consider it this way: you and your mortgage lender are sort of co-homeowners. They have a vested interest in maintaining the condition of your home, much like a trustworthy business partner would.
Your mortgage lender will ensure that you have the resources to take care of your joint assets in the worst-case scenario. Because if you didn't, your asset would be lost by both of you and your mortgage would have little to no value.
Your residence is protected by home insurance.
If the worst happens and you need to repair or rebuild, you may not have the same sum of money on hand because you went through the hassle of financing your new home.
Therefore, depending on the size of your home and the extent of the disaster, such as a fire or hurricane, you might save hundreds of thousands of dollars in out-of-pocket costs.
Your things are protected by home insurance
Your primary residence is not the only thing that homeowners' insurance covers. What about all the priceless items you've accumulated over the years?
Homeowners' insurance also provides coverage for your things, generally known as your personal property. It safeguards your priceless possessions in the event of theft, damage, or loss. Even if losing anything of value would be extremely upsetting, having the cash to replace it would undoubtedly lessen the pain.
Better than that, your laptop, bike, or phone are protected by homeowners' insurance even if they are outside your house.
You may sleep better at night with home insurance
Let's face it: when imagining the worst-case situations, our imaginations can run riot, conjuring up everything from a natural disaster to a robbery a la Ocean's 11 However, by providing you with the required security and assurance that, if and when they do, you'll be able to handle it, homeowners insurance will help you lay those demons to rest. More information on the particulars of homeowner's insurance coverage is available here.
There is always a potential that a guest could get wounded while on your property, and if that injury results in medical costs (also known as physical injury), you could be held liable for compensation. It's crucial to obtain personal liability insurance, which is the name of this policy.