UG Insurance Brokerage Inc Blog
Homeowners insurance gives you financial protection in case of an accident or disaster which involves your home.
This type of insurance also pays for damages and losses to your property if something unforeseen happens, such as burglaries or fires. If you have a mortgage, the lender typically wants to ensure that your property is safeguarded by insurance. That is why renters usually expect and require proof that you carry homeowner's insurance.
Why Is Homeowners Insurance Required?
A typical homeowners insurance does not cover damages caused by floods or earthquakes. However, it is possible to add that feature to your coverage. This type of insurance is also called "hazard insurance."
There are plenty of homeowners who pay for their insurance via an escrow account as part of their mortgage payments. You can send the payments to your lender while the lender holds the amount of the fee intended for insurance and place it in an escrow account.
When the bill for the homeowner's insurance is due, the lender takes the money from the escrow account to pay for the bill.
If you do not carry homeowner's insurance, the lender usually buys one for you and then charges you for it. However, it is worth noting that your lender should give you a notification before doing so.
If the lender only buys insurance on your house because you were not keeping up with your homeowner's insurance, the policy will only protect the lender. It could also result or turn out to be more pricey than what you can buy yourself.
Standard Homeowner's Insurance Protects:
Standard Homeowners Insurance Does Not Cover:
Having homeowners insurance will not stop accidents from happening or damages to your home and its belonging; however, it will help give you a financial safety net from unforeseen perils. Look for an insurance company that will help you find an ideal policy for you and your lifestyle, so you are better prepared for a crisis.
At UG Insurance Brokerage Inc., we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (718) 848-7777. Get your free quote today by CLICKING HERE.