Buying a home for sale in Knoxville is exciting – and it’s also a really busy time. You have a dozen things on your “To-Do” list, and things can become overwhelming pretty quickly. One of the things on your list is to start searching for a good homeowners insurance policy, so this guide explains the basics so you know what to look for.
The Complete Guide to Homeowners Insurance
When you buy a home using a mortgage loan, your lender will require you to buy homeowners insurance. But even if you’re buying a home with cash, it’s still a good idea to buy a policy that protects your investment. Homeowners insurance requires you to pay a small amount monthly or annually in exchange for coverage if something happens to your house; it’s a lot like car insurance. If you never need it, great – but if you do need it, hopefully you have enough to cover your expenses.
You can get insurance to cover things like:
- Natural disasters
Is Homeowners Insurance Required With a Mortgage?
Homeowners insurance is typically required with a mortgage. In fact, you have to show proof of the insurance before your lender will give over the money to the seller – and that’s because the lender doesn’t want to be on the hook for the cost of repairing or replacing the home if something happens.
When Should You Get Homeowners Insurance?
Because you have to show proof of your homeowners insurance policy before closing, you should get it in the weeks leading up to your closing day. You can get the insurance policy in place even before you actually own the home; your insurance company will make your temporary policy permanent after you close.
Do You Need Insurance if You Don’t Have a Mortgage?
There’s no law that requires you to pay for homeowners insurance if you’re not taking out a mortgage, so you wouldn’t get into any legal trouble for not having it. However, homeowners insurance protects your financial interests – it’s there to pay for repairs and replacement if something goes wrong. It’s always a good idea to play it safe and find a homeowners insurance policy that meets your needs, even if you’re buying a home with cash.
What Does Homeowners Insurance Cover?
Every policy is different, and if there’s something that’s important to you to include, talk to your insurance agent about it. Many insurance policies cover things like:
- Wind damage
- Hail damage
- House fires
- Lightning strikes
- Water damage
- Personal injury damages
Most homeowners insurance policies do not cover flooding. Flooding is another story, and it typically requires you to purchase separate coverage. If you live in a flood zone, it may be incredibly important for you to get flood coverage; if you don’t, it may not be necessary (though remember, floods can – and do – happen anywhere, not just in flood zones).
Are You Buying a Home in Knoxville?
If you’re ready to buy a home in Knoxville, I’ll help you find one that’s perfect for your needs. Call me at 865-368-5150 now and let’s talk.
While you’re here, use this Knoxville home search – you can see listings instantly! You can also look at:
- Bearden homes for sale
- Downtown Knoxville homes for sale
- Halls homes for sale
- Knoxville homes for sale
- Norwood homes for sale
- Cedar Bluff homes for sale
- Farragut homes for sale
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