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Is Homeowners Insurance Required by Law?

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Am I Legally Required to Have Homeowners Insurance in San Diego, CA

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Even if you’ve owned a home for quite some time, you still might not be sure if you’re required to have homeowners insurance. It’s always a good idea to insure any of your major investments and purchases, but the legality of home insurance can be a complex subject. The experts at Altra Insurance Services, a leading provider of home insurance San Diego residents can trust, offer a quick glimpse at what types of homes must be insured and a few of the benefits of this type of coverage. 

An Overview of Homeowners Insurance

Anyone who plans on buying a home should spend some time researching exactly what homeowners insurance is for. Every policy is slightly different, but your home insurance is most likely going to cover personal possessions that are on your property, the structure of your home, liability issues, and living expenses if you must leave your home. The average policy will typically be used in case of fire, wind damage, theft, or vandalism. You can also add riders to your insurance to cover specific events or items that aren’t included in the basic policy. 

Basic Legal Requirements

Many people are surprised to hear homeowners insurance isn’t required by law in most areas. While outside parties such as contractors often require you to have coverage before they’ll work with you, the average homeowner isn’t going to get fined or sent to court if he or she doesn’t have a policy. That being said, failing to have insurance on your home can leave you open to major liability issues that could wreak havoc on your finances for the rest of your life. Those are just a few of the reasons everyone should carefully consider homeowners insurance before they even think about placing offers on homes. 

Insurance Due to Mortgage Requirements

While most city and state governments won’t fine you for not having insurance, the vast majority of homeowners must still have insurance. Whenever you apply for a home loan, the mortgage company is going to have a few different requirements you must accept before you’re approved. In most cases, a mortgage application won’t be approved if there isn’t adequate insurance for the amount of the loan. Depending on your lender and insurance provider, you might be able to apply to remove your home insurance once a certain amount of the loan has been paid off. That being said, canceling your policy will leave you open to major financial risks. 

Benefits of Homeowners Insurance

Homeowners insurance often seems like one extra hassle you have to take care of, but it’s actually going to be very beneficial. If a resident or guest is ever injured on your property, your insurance policy could be your first line of defense against a liability case. Your insurance might also help you cover some or all of the expenses if your home is ever seriously damaged and you must move for a short time.

For reliable, affordable homeowners insurance, San Diego homeowners know they can trust Altra Insurance Services. We also provide renters, commercial, motorcycle, and auto insurance. San Diego residents can receive a free quote by calling one of our friendly agents today at (800) 719-9972.

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