Is Home Insurance Required by Law

Home insurance isn't required by law, but all mortgage companies absolutely impose you to have homeowners insurance coverage, otherwise they won't finance your home.

It's a security measure for them to recover their money in case your home burns down or in case of other disasters.

If you live in an area subject to floods the mortgage lender will probably require you to purchase a flood insurance, that isn't usually included or bundled with a standard home insurance.

You're not required to have home insurance if you don't have any mortgage, but you should really consider buying it: if you don't have a home insurance you would be paying for every repair, or worse for a full reconstruction.

There's no need to say that probably you couldn't afford to rebuild your house.

A homeowners insurance will also pay for living expenses you should sustain while your house is being repaired: hotel and other expenses until you can go back to your house.

Purchasing a home insurance policy is a smart choice, you'll always wish that you'll never need to use it, but it's worth the feeling of knowing that, even in case your home received major damages, you'd be backed by your insurance.

If someone accidentally hurts on your property you might be brought to court: you would have to pay for their medical care and provide them income while they're recovering. Home insurance will cover this case too.

In conclusion, home insurance isn't required by law, but you should really consider purchasing one, the benefits you might have from it are enormous if compared to how much it will cost you.

Best Homeowners Insurance Companies

There is not one best homeowners insurance company for every home owner. For one thing, insurance plans are regulated at the state level, and premiums are set at local levels. Your rates could be very different than your brother's rates if he lives one zip code over. Other factors matter too. Some people may benefit because they qualify for home insurance discounts that a particular company offers, while those premium reductions may not benefit his neighbor. So we cannot tell you which specific company is best for all consumers.

But you can find the insurer that is best for you. You can do this by comparing some features that are common to all of the best insurance companies.

• Customer Satisfaction - Spending money on a policy will not help you if your insurer does not have your back when you have to make a claim! Find out about the claims process, and find out how well current customers were treated when they needed their insurer's help.
• Policy Features - A normal homeowners policy is actually a bundle of protection. You should have your actual building and land covered. You should also have your personal property insured. Beyond that, homeowners need liability in case somebody makes a damage claim on your property. And one final feature that can really come in handy is the location assistance. This will give you a temporary place to live if your home is damaged or destroyed. It is important to understand how these homeowners policy features work if you need to make a claim.
• Premiums - Of course, nobody wants to pay too much. Your actual premium will be set by your location, value of your home, policy amounts, and what discounts you qualify for. But insurers do vary, and they are not all the same. You can save a lot of money by comparing home insurance policy premiums.
• Discounts - A large property insurance company that covers homes and autos may offer popular discounts if you move all of your business to them. Some insurers will offer discounts for anti-theft or safety features too. You will want to find the insurer who will give you the best deal for things you already do, or that you could do. Many of the discounts that insurers offer are for things that are wise to do anyway. Insurers keep a lot of statistics, and they believe these actions, like installing smoke detectors, helps cut claims and saves lives.