Here are some of the consequences of forgoing homeowners insurance coverage.
If you own a home, then you need to have the right insurance to protect your property, belongings, and loved ones. However, some homeowners incorrectly believe that they can get by without having this essential coverage in place. To emphasize the importance of this coverage, here are some of the consequences of forgoing homeowners insurance.
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 lien, or legal claim to your property, they have the ability to initiate foreclosure proceedings in response to the cancellation of your home insurance.
- Lack 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 held responsible for. Additionally, this coverage will pay for your legal defense in the event that the affected party decides to sue you. If you do not have home 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 home insurance policy.
- Inability to Repair or Replace Lost Items
Your home 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 pay for them. This could leave you without some of your most precious items.
These are some of the consequences of forgoing homeowners insurance. Do you need help securing the right home coverage to address all your needs? If so, then contact the team at John E. Peakes Insurance Agency. Our professionals are eager to assist you with all your homeowners insurance needs today.