Buying a new home can be very exciting. From getting to choose a home that is big enough for your whole family to finding one in a location that is close to your work, there are many aspects to consider when shopping for a new home. With all of the excitement going on, you may overlook one of the most important parts of buying a new home – purchasing homeowner’s insurance. In fact, without this type of insurance, you may not be able to get a mortgage loan. Memorial Insurance Agency serving the Houston, TX area has put together a quick go-to guide outlining the reasons you need a homeowners insurance policy when buying a new home.
Paying for Damage
It would be awful if you invested in a new home and then it got damaged. With the right insurance policy in place, though, you can rest easy knowing you will be covered if the home was damaged or lost due to certain events. Not all damages are covered in a homeowners insurance policy, making it very important to review your policy with a qualified insurance specialist who can explain the terms and conditions in an easy-to-understand language.
If you don’t have the cash on hand to buy a new home, you will need to take out a mortgage loan. Almost all lenders will require you to provide proof of insurance on the home in order to qualify for a loan. These lenders want to know they are going to receive payment on the loan even if the home was damaged or considered a total loss under the policy.
Want to learn more about homeowner’s insurance? If so, contact the Memorial Insurance Agency serving the Houston, TX area.