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Lease, Rental and Mortgage Home Insurance Requirements

By Compuquotes Team on March 27th, 2008

Homeowners Insurance

Regardless of whether you are leasing, renting or owning your home, you will want to invest in home owners insurance to protect your investment and your contents. There are many things that can go wrong in a home and cause a loss of items, the home structure itself and injuries to persons in the home. Injuries to people are covered by the liability insurance portion of your home owners insurance, and protects you from visitors and others who have hurt themselves on your property.

When you purchase a home, chances are that you have gone to a financial institution to get a mortgage to pay for the home. In effect, the bank actually owns your home and you are paying them back-once you have paid them back, then you 'own' the home. In the meantime, you own part and the bank owns part-simply because it is their money that secured the home for you. Most financial institutions require that you have home owners insurance. This is to protect their investment in the home from loss as well as to protect you from any loss of the home itself. In the event of a catastrophic accident where the home is damaged or destroyed, if you do not have insurance, you will still owe money to the bank for the mortgage. Home owners insurance protects you from this devastating financial loss in the event of a peril happening to your home.

Most landlords or leasing companies also require you to have some form of renters insurance on the contents of your home. Your landlord is not responsible for the contents of your home in case of loss or damage due to a perilous event. However, on the flip side of the coin, you are not responsible for insuring the structure of the home or apartment building from damage or loss. If you are renting or leasing a home or apartment, you will want to get renters insurance to protect your valuables and contents of your home. Ensure that your landlord has adequate structure coverage for the building itself.

Even if it seems that you don't own anything of value and you are renting or leasing a home, everything in your home is valuable. Can you imagine not having a bed to sleep in, clothes to wear or food to eat? Could you afford to replace everything you do own in the event of fire or theft? The answer is probably no. Renters insurance covers everything in your home, right down to your socks.

Home owners insurance and renters insurance is a wise investment. Of course, one hopes that it is never needed and that it's an 'extra purchase' that you don't ever have to use, however if you do need it someday, you will be glad you made that 'extra purchase' which will save you thousands and thousands of dollars.

No one can predict the future-fires, theft and damage occur all the time to homes and contents across the country. It could happen to you, too, no matter how careful you are. Find out what your bank, landlord or lease company requires you to have for insurance and find out from an insurance company, agent or broker which coverage suits you best.

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