The documents that you need for a deed of trust or mortgage emphasize that the borrower of the home should have home insurance. If one fails to maintain this insurance, it can be a ground for foreclosure.
In some instances, the lender can also purchase his or her insurance policy and charge the homeowner. However, if both the lender and homeowner failed to pay, this can be another ground for foreclosure.
Being obliged to pay out of pocket in case of liability
If injuries happened within the vicinity of your property, specifically due to negligence, you are amenable to cover the medical expenses of the injured. With insurance, you can payout from your insurance policy up to its limit. Unfortunately, having none will force you to pay directly out of your pocket.
Potential devastating effects of storm damage to property
A home may face severe damages caused by tornadoes, hurricanes, and storms. If your home is located in the disaster-prone area, the more you are at risk of these damages. It can leave your home with required expensive repairs, and may also make it unsafe for your family to live in. In this instance, you will be forced to relocate and rent for a while, hence having no insurance makes you cover all the financial obligations.
Unprotected of the threat of lawsuits
As a homeowner, you also feel the joy of having visitors come over. But not after a visitor gets beaten by your dog or a neighbor slips on the floor. Both situations may lead that person to file a lawsuit against you. If you have home insurance, fees and other legal services will automatically be covered by it. However, having none can force you to hire a private attorney with your own money.
At Independent Executive Insurance Brokers, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (805) 624-4815. Get your free quote today by CLICKING HERE.