Whether you’re buying a new home or you’ve been living at the same address for decades, you likely know about homeowner’s insurance.  You probably also wonder whether or not you really need it, since many people will never go on to make a claim.  But even if homeowner’s insurance is not required in your state, it’s still an important part of owning a home.  Here are a few reasons why.

Your Lender Requires It

Even if your state doesn’t require homeowner’s insurance, your lender often will before you can get a mortgage or refinance your existing one.  This makes sure the lender’s investment is protected against loss.  In many cases, a lending application can be cancelled if proper insurance cannot be secured, or the lender may purchase insurance and add it to the monthly mortgage payment.  Check with your lender if you have specific questions or concerns.

It Protects Your Investment

Unlike cars, which start to depreciate in value the minute you drive them off the lot, houses generally appreciate in value.  Even in rough economic times when home values can take a huge hit they will often recover given time.  Homeowner’s insurance can help protect what for most people is their largest investment.

It Guards You From Loss

Homeowner’s insurance isn’t just for the lender’s peace of mind.  It can cover you in the event of loss or disaster.  If your home ever burns down, or you’re the victim of a burglary, or something else causes potential financial loss, homeowner’s insurance can pay to repair the damage and replace your lost possessions.

Are you a new home buyer looking for homeowner’s insurance?  Are you a long time owner who is seeking a new policy and don’t know where to start looking?  The agents at Don Allred Insurance can sit down with you and help you decide on a homeowner’s policy that will suit your needs.  So give them a call today!