Here’s what could happen if you don’t have homeowners insurance.
As a homeowner, it is your responsibility to care for your property, belongings, and loved ones. The best way to accomplish all these goals is by securing the right homeowners insurance coverage. However, some property owners have the misconception that they can get away with not securing insurance. To ensure that you do not make the same mistake, here are some of the worrying things that could happen if you don’t have home insurance.
1) Loss of Legal Protection
Your homeowners insurance offers personal liability coverage. This coverage is designed to pay for the third-party injuries and property damage that you are deemed responsible for. Additionally, this coverage will pay for your legal and settlement fees in the event that the affected party decides to sue you. If you do not have homeowners insurance, then you will be responsible for paying for an injured party’s medical fees, repair costs, and other damage expenses. You will also have to pay for a lawyer, your settlement, and other legal costs if you end up in court. These expenses could bleed you dry. If you want to avoid this considerable financial strain, then make sure you get the personal liability protection you need with the right homeowners insurance policy.
2) Inability to Repair or Replace Lost Items
Your homeowners insurance offers personal property coverage which will pay to repair or replace the belongings that are damaged or lost as a result of a covered peril. Without homeowners insurance, you would have to pay for repairs or replacements out of your own pocket. If very expensive items were lost, then you might not have the money you need to replace for them. This could leave you without some of your most precious items.
If you have a mortgage on your home, then your lender will require you to carry some form of homeowners insurance. If you attempt to cancel your policy, then your bank will not be happy. Because your lender has a legal claim to your property, they have the ability to initiate foreclosure proceedings in response to the cancellation of your homeowners insurance.
This is what could happen if you don’t have homeowners insurance. Looking to secure the right homeowners insurance to protect your property, belongings, and loved ones? If so, then contact the experts at The Reardon Agency. Our dedicated team is eager to assist you with all your coverage needs today.
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