While most homeowners understand that their home insurance is an essential coverage, some believe that they can get away without insurance protection. However, deciding to forgo your home coverage is a risky decision. Here are 3 reasons why canceling your homeowners insurance is a bad idea.
1) You Lose Coverage for Your Legal Protection
Your homeowners insurance offers personal liability coverage. This coverage is designed to pay for the third-party injuries and property damage that you are deemed responsible for. Additionally, this coverage will pay for your legal and settlement fees in the event that the affected party decides to sue you. If you do not have home insurance, then you will be responsible for paying for an injured party’s medical fees, repair costs, and other damage expenses. You will also have to pay for a lawyer, your settlement, and other legal costs if you end up in court. These expenses could bleed you dry. If you want to avoid this considerable financial strain, then make sure you get the personal liability protection you need with the right home insurance policy.
2) You May Be Unable to Repair or Replace Lost Items
Your home insurance offers personal property coverage which will pay to repair or replace the belongings that are damaged or lost as a result of a covered peril. Without homeowners insurance, you would have to pay for repairs or replacements out of your own pocket. If very expensive items were lost, then you might not have the money you need to replace for them. This could leave you without some of your most precious items.
3) You Could Face Home Foreclosure
If you have a mortgage on your home, then your lender will require you to carry some form of homeowners insurance. If you attempt to cancel your policy, then your bank will not be happy. Because your lender has a legal claim to your property, they have the ability to initiate foreclosure proceedings in response to the cancellation of your home insurance.
These are just a few of the many reasons why canceling your homeowners insurance is a bad idea. Do you need help securing the right insurance coverage to keep your home, belongings, and loved ones safe? If so, then contact the professionals at Mike Leonard Insurance Agency. Our professionals are eager to find you the right coverage from one of our many carriers including: Kemper, MetLife, Nationwide, Travelers, The Hartford, Safeco Insurance, Progressive, and American Strategic Insurance.