If You Have a Mortgage, You Need Homeowner’s Insurance

Why? Your lender wants to ensure their interest is protected in a disaster, such as a fire or weather event. Contact Keltner insurance of Memphis, TN to get answers to any questions you may have regarding this coverage.

It is not required by law like car insurance is. You are legally required to purchase car insurance, but homeowners’ insurance is not legally necessary at any level, from federal down to local.

Homeowners purchase insurance for the same reason they buy health and auto insurance. It provides financial protection due to accidents, theft, or disasters. If your home is damaged or someone is injured on your property, insurance helps defray the costs of such events. The following is the typical type of protection you can expect from your policy.

Covers the Structure of your Home

If your home needs to be repaired or rebuilt due to hail, lightning, fire, hurricane, or other disasters as listed in your policy, the policy will pay. When purchasing insurance for your home, make sure you buy enough to rebuild your home.

Covers your Personal Possessions

They are covered if any of your belongings are stolen or destroyed by a weather event. More expensive items such as art, collectibles, jewelry, or furs are usually covered with dollar limits. You may want to purchase a separate rider to insure them for their officially appraised value.

Liability Coverage

If your dog damages your neighbor’s lawn ornament, or if he bites the neighbor, you are covered. The liability portion of your policy protects you against lawsuits for property or bodily injury. Limits usually start at $100,000, but a higher level should be discussed with your agent.

(ALE) Additional Living Expenses

The additional costs of living away from home will be covered if your residence is deemed unhabitable during the repair or rebuild. It covers hotel costs, restaurant bills, and anything over and above the usual living expenses. ALE coverage usually has limits, both monetary and time. But they are separate from the other costs.

If you are in the process of purchasing a home, contact Keltner Insurance today to get answers to all your questions. You will be glad you did.