knigh-dik preheader image with phone number 800-286-6353
Home
Term Life Whole Life Variable Life
 

The feeling of sending in your final mortgage payment can be amazing. For many property owners, this is one of the largest payments they make each month. Now that you do not have this debt, you may feel it is okay to stop purchasing homeimage of home in massachusetts insurance. However, this can be a very big risk. Instead, work with your agent to make your policy a better fit. Here is why it matters.

Mortgages Require Comprehensive Home Insurance

When you have a loan on your home, the lender likely requires you to maintain a home insurance policy. The policy protects the home. If there is damage to the home, such as a fire, the payment from the home insurance for the fire could pay off the lender’s investment. They do not lose money. But, once you pay off the loan, this obligation is no longer present.

Why Canceling Is Not Good

Even with a loan no longer requiring your policy, there are countless benefits to it. The risks associated with your home remain the same. Here are a few key examples.

  • Someone Breaks into the Home

When this happens, you can lose thousands of dollars’ of collectibles, electronics, and other valuables. You also have damage to repair. This can be expensive to overcome.

  • Fire Breaks Out

Without home insurance, a fire could destroy your financial health. If the fire is significant, it may mean you can to obtain a new loan to build a new home, if you lack coverage.

  • You Could Face a Lawsuit

Perhaps you decide to add an extension onto your home, but a worker falls and suffers a significant injury. You could be liable for the losses here, too. Without liability insurance, these risks are your own to bear.

What You Should Do

Instead of allowing this to limit you, consider speaking to your insurance agent about your options. Talk about:

  • Whether the amount of coverage you have is the right amount
  • What risks are present
  • What safety steps you can take to minimize risks
  • What discounts and rewards you may qualify for
  • How you can save by bundling your policies

The key here is not to overcome the value of home insurance. Now that you paid off the home, it is more valuable to you than ever before. You do not want to risk it.

Posted 7:34 AM

Share |


No Comments


Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive


View Mobile Version
BLOG
contact us our team and workers comp buttons
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
Knight-Dik Insurance Agency | 446 Main St, Worcester, MA 01608 | Ph: 508.753.6353 | Fx: 508.752.1764
image of facebook icon LinkedIn icon google plus icon yelp image of bbb logo and rating

Powered by Insurance Website Builder

Email Us Call Us More Information