Why You Need to Purchase Home Insurance

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Whenever you take a mortgage to purchase a home in Dallas, TX or elsewhere in DFW, the lender will direct you to buy a home insurance policy to protect their interests. Unfortunately, most of the homeowners who purchase homeowners’ insurance policy from Thompson Insurance Services don’t understand its features and how it can save them in the event of a disaster.

Do not allow the excitement of purchasing a new home be cut short by the numerous unforeseen risks that can put you in a financial crisis. Make sure that you have the right policy to protect your biggest asset. Here is all that you need to know about home insurance.

What Does a Homeowners’ Insurance Policy Cover?

A standard home insurance policy offers coverage for the house structure and other structures that are attached to it such as your car garage, gazebo, or shed. It also covers your personal property such as clothes, furniture, and electrical equipment in case of theft, fire, wind, or hail.

The liability coverage offers protection against lawsuits that may be filed against you if an accident occurs in your home. Your standard home insurance also covers loss of use meaning that if a disaster such as fire happens and your home is rendered uninhabitable, the coverage will cater for things such as hotel costs.

There are Different Types of Home Insurance Policies

The home insurance coverage can either be an HO-3, HO-5, or HO-6 policy. However, the most common type is the HO-3 which offers you coverages against the common disasters that are covered by the policy. It insures personal property against all named perils. The HO-5 covers both your home structure and personal property while the HO-6 policy is meant for condo or co-op owners.

It’s Mandatory

All mortgage companies require you to purchase home insurance for you to access financing. If you don’t have home insurance at the time of closing the deal, the lender will be forced to get one for you through a provider of their choice.

Are you a homeowner in the Dallas, TX area? Contact Thompson Insurance Services today for your home insurance policy needs.