As a homeowner, you may be wondering whether you should keep your homeowners insurance once your mortgage is paid off. Our agents at Alpine Ridge Insurance, serving Auburn, WA, can help you choose the right option for your situation.
Disadvantages of Discontinuing Your Homeowners Insurance
Your home is a significant investment, and one you want to protect for years to come. When you pay off the mortgage, it means you’ll save a significant amount of money. Add to that the discontinuance of your homeowner’s insurance, and your savings increase. While this may seem beneficial to your current and future financial stability, it leaves your biggest investment unprotected and your finances at risk.
If you discontinue your policy for a lengthy period, then decide to reinstate it, you may find your premiums are higher. Or your application may be declined because your home has not been insured for a while.
Advantages of Continuing Your Home Insurance
There are several advantages to continuing your homeowners policy after your mortgage has been paid off. It protects your home’s structure and your personal belongings within the home. With an active policy, you aren’t responsible for paying for repairs or replacements out of pocket if a covered event occurs.
Homeowner’s insurance provides liability coverage, which protects you if a visitor gets injured on your property and files a lawsuit against you.
If you are unable to live in your home due to damage, your insurance can help cover the cost of temporary housing and meals while repairs are being made (if you have coverage for additional living expenses).
Contact Us
At Alpine Ridge Insurance, serving Auburn, WA, we understand homeowners insurance and its importance. If you have questions or need more information about discontinuing your policy, contact us before making a decision.
