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Should I Buy Home Insurance, Do I Really Need It?

Should I Buy Home Insurance

If you’re questioning if you need to buy home insurance, let us help. Yes, you should! OK, let’s not be too blunt, maybe you have never filed a home insurance claim and it has you questioning if you need home insurance. We understand, that when you’re making your monthly home insurance premium payment it may be difficult to see the real value of home insurance. It’s not something you use every day, so you’re wondering if it pays to insure your home.

Let’s explore this a bit and help you understand why you should buy home insurance.

Homeowners insurance may be required

If you have a mortgage, then your lender will require you to have homeowner’s insurance. So, whether you agree with purchasing home insurance or not, the lender will make the choice for you. In fact, most lenders will not fund your mortgage or refinance until proof of adequate home insurance is provided.


From the lender’s position, they are investing significant money into your home, and in return, they need to ensure that their financial position is protected. Lenders will take this seriously, making home insurance a condition of closing escrow or funding your loan. In fact, if you cancel your insurance after funding and refuse to buy home insurance, your lender will force-place coverage and include the premium in your mortgage payment.

Your family home is likely the biggest investment you will make. Unlike when you purchased your car, a depreciating asset, your house will increase in value over time. History shows us, that over time you will see a return on the purchase of your home – through market ups and downs. So, you should view your home as an investment asset. Your home insurance is a hedge against certain risks from doing harm to your investment. So, even if you’ve paid your mortgage off early, homeowner’s insurance is still a sound financial decision.


Force-placed home insurance policies are typically secured to protect the interest of the lender and not the homeowner. Its coverage is generally designed to cover the mortgage balance. It will not provide you with personal liability protection or cover your personal belongings. It is not designed to directly protect your interests in the event of a loss.

Home insurance helps provide peace of mind

Having a home insurance policy can’t prevent acts of nature, and won’t protect you from all the risks of home ownership. But a home insurance policy can put a very nice safety net between you and financial catastrophe when a covered loss occurs. As long as you have a good home insurance policy in place, you can rest easier knowing that you are in a better position to survive a crisis when the unforeseen happens in the home.

You can’t put a price tag on peace of mind, but a home insurance policy, and knowing that your home has excellent protection, can position you nicely for a relaxing cruise on the peace-of-mind highway.

Home insurance helps protects you from financial loss

Beyond peace of mind, there are real tangible perks to having a good home insurance policy. Below are some of the things your home insurance policy can protect against:

  • Theft and damages when you are burglarized
  • Fire, water loss, or other covered perils
  • Repair or replace personal belongings damaged in a covered loss
  • Personal liability protection
  • And much more…

Learn more about the perils your home insurance covers or how home insurance works.

The bottom line

If you’re ready to buy your first home or a current homeowner, having home insurance is the right choice. Even if it’s compelled by your mortgage lender. Frankly, changing your home insurance is quite easy. If you’re considering switching, contact us, we’re happy to help. You can also get a home insurance quote online.

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