If you are considering buying a home or already own one, you probably know home insurance is a necessity. However, you might have questions about why it’s required and what it covers. Glenn Herring Agency in Munday, TX, is a trusted provider of a variety of policies, including auto and personal liability insurance. They will help you understand the details of home insurance coverage.
Why Home Insurance Is Required
While state laws do not require homeowners to obtain insurance, mortgage lenders do. If you finance the purchase of your home through a bank, you must provide proof of insurance, which then is included in your monthly mortgage payment. If you do not obtain the minimum coverage, the lender can assign you a plan — usually with a much higher monthly premium. Lenders require buyers to get insurance to protect their investment.
What Is & Isn’t Covered By a Policy
Home insurance coverage varies significantly, depending on the location and size of your house. Most policies protect you financially against damage from fires and some natural disasters, such as storms, as well as theft and vandalism. Some include liability coverage that protects you if someone is injured on your property.
Most policies do not cover flooding, earthquakes, or damage caused by pests such as termites, but you can purchase separate plans to protect you from these events. Normal wear and tear also is not included. Additionally, if you fail to maintain your home and the appliances therein, damage resulting from this lack of upkeep might be excluded from coverage.
Factors That Affect Premiums
Many factors impact your monthly premium charge. Insurance companies consider the size and location of your home, as well as the cost to rebuild it and replace its contents. The materials used to construct your home and amenities like a fireplace or swimming pool also will affect your payments.
Home insurance can be costly, but it’s far more expensive to be without it if a disaster strikes. The insurance agents at Glenn Herring Agency will find the right level of affordable coverage so you will be protected. Visit them online to learn about discounts they offer homeowners, and call (940) 422-4359 to schedule an appointment to meet with an insurance agent.