Costly Closing Costs: Should You Also Buy Homeowners Insurance?

Closing costs can be anywhere from 1 to 5 percent of the total price of the home, and they are due at the time the sale closes. One of these costs may be purchasing homeowners insurance. It is generally a good idea to do so whether your lender requires you to do so or not.

Protect Yourself against Liability

Let’s say that your dog bites a guest at your annual summer party. If you don’t have homeowners insurance, you could pay for the damages that the victim incurs, and those damages could run as high as $100,000 or more. Homeowners insurance can also protect you financially if someone is hurt slipping on your icy driveway or tripping over a rug while inside.

You Get Protection for Everything inside of the Home

If your home was burglarized, your homeowners insurance policy will likely pay for anything that goes missing. The same is true if items are damaged in a home invasion. Your policy will likely cover the cost of repairing or replacing lost, stolen or damaged items inside of a shed or garage. Carports and similar structures on your property could also be included in your policy.

Homeowners Insurance Is Relatively Inexpensive

Homeowners insurance polices generally cost less than $1,000 per year. The payments can be rolled into your mortgage, so you don’t have to worry about making them on time. Before you purchase a policy, be sure to shop around to see what local insurance providers offer both in terms of cost and coverage levels. Independent brokers may be able to scour offerings made by all companies in your area to find the best policy.

What Happens If the Roof Is Damaged?

A powerful wind storm could result in shingles being blown off of your roof. It could also result in the entire structure being separated from the home. Regardless of the extent of the damage, it is important to fix it as soon as possible. With an insurance policy, you can get the money needed for repair work in a matter of hours or days. From there, you should look for a residential roofing professional.

Buying homeowners insurance provides you with a variety of benefits that are well worth the cost. While you hope that you never have to use it, it can save you thousands of dollars in repair or other costs if disaster strikes on your property.

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