Why Homeowners Insurance Should Be Continued After Paying Off Your Home

Why Homeowners Insurance Should Be Continued After Paying Off Your Home

Homeowners insurance in Florida is only a requirement when you are paying off your mortgage. The moment your mortgage is completely paid off and you own nothing more to the bank, you are no longer required to maintain a homeowner’s insurance policy. Although it's no longer required, it is still advantageous to have – and there are many reasons for this.

You Can't Anticipate Accidents

Life would be much easier if you could anticipate accidents such as our hurricane blowing through or a fire breaking out in your kitchen. Unfortunately, accidents cannot be predicted. Therefore, you have to have some sort of means of dealing with them when they do occur.

If you don’t have homeowners insurance, Murphy’s Law is likely going to present itself when you least expect it. An accident will happen and cause damage to your home. Depending on the accident and the severity, it can be a lot to repair. You don’t want to empty your savings account or bury yourself in credit card debt because of one accident and therefore you have to have an alternative.

A homeowner’s insurance policy in Florida can help you to deal with accidents when they occur. While you may have to pay a deductible before the insurance company pays what they are responsible for, it’s a lot better than the alternative.

Home Repairs are Expensive

Home repairs are more expensive than you might think. If there is damage to your roof, it could be several thousand dollars. A fire could destroy interior and exterior aspects of your home, and this could end up being tens of thousands of dollars in repair bills. Think about how much the repairs could cost if something were to happen, versus the cost of a home insurance policy.

Insurance Premiums are Affordable

Home insurance premiums are quite affordable. They will vary based upon your ZIP Code, the value of your home, and several other things. However, if you no longer have a mortgage payment, the insurance premium is virtually the only thing you would be financially responsible for on your home, aside from any HOA dues and property taxes.

Filing a Claim can Prevent You from Being Homeless

Major accidents can leave you with no home. Being homeless is certainly not a desirable option and therefore it’s best to be able to file a claim with an insurance company. Only home insurance will allow you to file a claim – and therefore you want to have a policy.

An independent insurance agent can help you to find a good policy so you can have the coverage, even if it’s no longer required of you.