Purchasing a home is probably the biggest investment a person makes in their lifetime. New homeowners often wonder if they have to purchase home insurance in order to qualify for a mortgage. Almost every mortgage company will require a homeowner to maintain insurance on the home they are financing. Mortgage companies are not likely to finance the purchase of a home without insurance coverage because they want to protect their investment as well as the homeowner. In the Glendale, CA area potential homeowners can discuss their home insurance needs with an agent at Voi Insurance Solutions LLC.
Insurance on a home generally covers destruction and damage to the home’s interior and exterior and the loss of the property or theft of possessions. Insurance policies typically cover personal liability in the case of harm to others. Destruction and damage can include but is not limited to fire and other natural disasters or accidents inside the house. Personal liability will cover the costs if someone is injured in the home and requires medical attention.
Mortgage companies require coverage because they have loaned money to purchase the property and they want to protect their investment. In the event that the property is destroyed by flood, fire, or another disaster the homeowner is still responsible for the remaining balance on the mortgage. This is why insurance policies in the full amount of the replacement value of the home is required. Homeowners are not stuck paying a mortgage for a home that is not there anymore.
Start your search for the right home insurance by discussing your options by visiting us and then speak with one of our friendly professional agents at Voi Insurance Solutions in the Glendale, CA area.