What Happens When You Fail To Have Homeowner's Insurance On Your House?

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About Me

Discussing Insurance Coverage Hello, my name is Linda Suzanne. Welcome to my website about insurance. When I was first living on my own, I went without many different forms of insurance due to budget constraints. Unfortunately, luck was not on my side, so that decision did not serve me well. After suffering several major financial losses, I looked into affordable insurance options that would protect me from further complications. On this site, I want to help everyone understand how to acquire the insurance coverage that works best within their budget. Thank you for coming to visit my site. I invite you to come back often to learn more.


Almost every mortgage lender in this country requires homeowners to have home insurance on their homes if they have a mortgage. This requirement is in place to protect the lenders that loan money on homes, and here is what you should expect if you fail to have home insurance on your house when you have a loan.

Your Lender Will Purchase a Policy for You

If you do not have homeowner's insurance on your house, you can be certain that your lender will purchase a policy for you. This is a standard practice with lenders, and lenders are always notified by insurance companies when homeowners allow lapses in their policies. Therefore, if you had a policy but did not pay it, the insurance company will tell your mortgage lender that this happened. At this point, your lender may send you a letter which gives you a certain amount of time to purchase a policy. If you fail to abide by the requirements, they will buy a policy on your behalf.

The Policy Offers No Coverage for You

The second thing to understand about this is that the policy your lender purchases will offer no protection or coverage for you at all. The policy they buy strictly protects them, and this means that the policy will only cover the structure of your home. If anything destroys your home, the lender's interest will be covered through the policy they purchased; however, you would get nothing from the policy to reimburse you for the things you lost.

You Can Avoid This

Finally, you should understand that this is something you can easily avoid, and this is something you want to avoid. The policy a lender buys will not be free. In fact, your lender will send you a bill, and the costs for it might be more than the costs were for your policy that offered you coverage for your personal things.

If you want to avoid this problem, you can easily do so by keeping home insurance on your home at all times.  You can call around to several companies if you want to find the best rates for your home.

If you own a house, you need home insurance for the house. Home insurance is the only protection you have against perils that cause damage to your home, and you can purchase a policy by contacting a homeowner's insurance agency today.  

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