Homeowners insurance, or simply home insurance, is not something that can be considered a luxury but a need. And not merely because it prevents break-ins and theft at home. Almost all mortgage lenders won’t extend credit for a home purchase or refinance an existing mortgage unless the borrower can provide proof of insurance covering the full or fair worth of the property (often the purchase price). In this blog, we’ll cover what Home Insurance Pearland TX policy is, why you need it, how to get the best deal on it, and more.
What Exactly Is Home Insurance?
Home insurance covers damage to your home and personal items caused by unforeseeable occurrences such as a fire, natural disaster, or break-in. It also provides financial protection for all your assets if someone is injured or their property is harmed, and you are held legally accountable.
You would have to pay for repairs or replacement of your belongings out of your pocket if you didn’t have homeowners insurance. And if someone gets hurt on your property and decides to sue you, they can claim damages from everything you own, including your house, retirement accounts, savings, and vehicles.
Is Home Insurance Mandatory?
Even though most states don’t mandate it, mortgage lenders will typically not approve your loan application unless you show proof that you have homeowners insurance. Your lender may also insist that you get flood insurance if your Pearland TX house is in a high-risk floodplain.
Start looking for home insurance at least three weeks before your closing date to give yourself enough time to compare rates and coverage alternatives.
Is Home Insurance Required In Texas?
Although Texas law does not mandate homeowners insurance, it is strongly recommended.
While the mortgage is still being repaid, the mortgagee has the legal right to insist that you acquire mortgage insurance. Lenders may also insist that you have National Flood Insurance Program coverage if your home is located in a high-risk flood zone.
Further, obtaining homeowner’s insurance in Texas (or elsewhere) is a good idea. Buying a house in Pearland TX is a significant financial commitment for most of us. That’s why it’s so essential to safeguard your capital and set up contingency plans.
So Why Is It Crucial To Have Home Insurance?
One of life’s most significant investments deserves financial security, and homeowners insurance does just that. If you’re sued for damages, it will also protect your personal belongings and other assets. Also, you’ll need to get home insurance before you can receive a mortgage from most lenders.
Homeowners insurance will cover you against most losses, including fire and smoke damage, theft, and vandalism. It will also provide coverage if someone gets injured on your property or if a tree falls during a storm.
Insurance companies may offer additional coverage for specific situations, such as earthquake coverage or flood insurance. If ever you reside in an area prone to these types of disasters, purchasing additional coverage through your insurer is a good idea.
How Do I Obtain Home Insurance?
When shopping for a Home Insurance Pearland TX policy, you can go directly to an insurance provider or choose a company like Pelican Insurance Agency, which provides coverage from various providers.
Pelican Insurance Agency staff of qualified insurance professionals will provide quotes from several companies, helping you find the best home insurance provider in Pearland TX that meets your needs at affordable prices. What’s even better? There won’t be any paperwork for you to worry about because they’ll take care of it all.
They can help you if you’re thinking about switching home insurance providers or if you’ve already made the change and need someone to cancel your old policy. They also offer flood insurance, auto insurance, and more. Contact Pelican Insurance Agency today if you have any questions about your insurance or need help finding a policy that meets your needs.