Owning a home is often considered a great long-term option. However, when you do on your own property, you will need to make sure that it is properly protected. While most owners of homes know that they need to protect their homes via home insurance, not all people realize that it is often a requirement under certain agreements. There are several situations in which carrying home insurance could actually be a contractual requirement for you.
Have a Mortgage
The first situation in which you will likely have to carry home insurance is if you have a mortgage. Due to the high costs in some areas, the majority of home buyers take out a home mortgage to finance their home. Your mortgage lender will undoubtedly require that you carry insurance during this time. This way, their collateral is properly protected in the event your home is damaged due to a fire, storm, or other loss.
If you live in a community that is governed by a condo association, you could be required to comply with associational insurance requirements. A condo association could have requirements that govern how much property damage and liability coverage that you have. This way, if something happens at your home that causes damage to another home in the community, you will have insurance in place to provide you with financial protection. It also will ensure that your home can be rebuilt to look the way that it did before a casualty.
If you are an owner of a home in the Burlington, NC area, you should reach out to Don Allred Insurance to learn more about your home insurance options and requirements. The Don Allred Insurance team will provide a full assessment of your needs and asset to make sure that you are properly covered.