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This
is an Insurance article by an independent author and jml
Insurance takes no responsibility for its accuracy or content
When
Is Homeowner's Insurance a Legal Requirement?
By Elizabeth
Newberry
Most
people are under the impression automobile insurance is the
only kind of insurance that is a legal requirement in America
– and, sometimes they’re correct. Health, life, long-term
care – none of these kinds of insurances is a legal requirement.
Homeowner’s insurance, on the other hand, is the exception.
Sometimes homeowner’s insurance is a legal requirement, and
sometimes homeowner’s insurance isn’t a legal requirement.
Purchasing
homeowner’s insurance is a legal requirement when you’ve borrowed
money from a lender, such as a bank, to pay for your home.
When you borrow money from a lender, you are entering into
a contract with that lender, and most often than not purchasing
a homeowner’s insurance policy can be found in the terms and
conditions. If your lender makes it a requirement for you
to purchase homeowner’s insurance – and they usually do –
then you must purchase homeowner’s insurance.
Why
do lenders require you to purchase homeowner’s insurance?
While you are the person who actually lives in the home, the
lender is the party that actually owns the home; therefore,
it’s understandable that the lender is going to take some
serious interest when it comes to the condition of the home
and the condition of anyone else in regards to the home. Should
your house burn to the ground, your lender is stuck with a
pile of charred ashes unless you have a homeowner’s insurance
policy to cover the damages. Unless of course you are wealthy
enough to repair your home yourself, from the ground up, which
probably isn’t the case since you needed a loan to pay for
the home in the first place.
The
legal requirement of homeowner’s insurance may vary in your
state, so be sure to check with your state’s insurance bureau.
Even if your home is completely paid for and there’s no legal
requirement for you to have a homeowner’s insurance policy,
consider protecting yourself and your home with one, anyway.
Home
Owners Insurance Quote Kentucky
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Article
Source: http://EzineArticles.com/?expert=Elizabeth_Newberry
The
information supplied on this page is by a third party and
jml Property Services do not take any responsibility to its
accuracy ©jmlpropertyservices 11/06
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