Home insurance can play a major role in protecting your real estates. These reasons to purchase home insurance policy are unbeatable.
Buying a large & expensive home is a dream of almost every individual. Once you get succeeded in realizing your dream somehow, you need to protect your most valuable asset from untoward incidents through policy coverage.
These unexpected incidents may cause partial or complete damage to your real estate property. It ultimately results in huge financial losses.
But, you can easily recover & rebuild your house without facing financial disaster. It is possible through buying a highly popular & reputed homeowner’s insurance plan. Here are 10 wonderful reasons to buy homeowner’s policy:
(1) Satisfying Your Mortgage Loan Provider
It is one of the most common reasons to purchase home insurance policy. Once you finalized a perfect house for you & your family needs, you need to arrange money. This is possible either from your personal account or by applying for a mortgage.
Most of the mortgage lenders including banks & other financial institutions will not grant a home loan at affordable premium. It is perhaps true unless property owner has homeowners policy even when it is not mandatory to have homeowner’s policy in your state or country.
Homeowners insurance typically provides protection to mortgage lenders in case the house is damaged somehow.
If you are unable to buy a policy or your policy is cancelled or lapsed or is insufficient then mortgage provider will purchase a forced coverage.
Forced coverage is also known as force-placed insurance, or creditor-placed or lender-placed insurance, or collateral protection insurance. It is needed for your house to cover the mortgage loan.
It is highly recommended for homeowners to buy a homeowner’s policy through their own efforts. It is because forced coverage is extremely expensive.
Additionally, it is found to protect only the interest of lender rather than owner of the house.
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