Do You Have to Buy Homeowner’s Insurance?

When you buy a home in Lakewood or Long Beach, do you have to buy homeowner’s insurance? Here’s what you need to know.

Do You Have to Buy Homeowner’s Insurance?

In the vast majority of cases, you absolutely have to buy homeowner’s insurance when you buy a home. Even if your lender doesn’t require you to buy it, it’s usually still a good idea. This type of insurance can cover things like:

  • Accidents
  • Crimes
  • Fire
  • Natural disasters

Lenders typically require it because they’re the ones on the hook for the house if you decide to stop paying – and if something makes your house uninhabitable, you’re far more likely to stop making payments than you would be if you were still able to live in the house. The bottom line is that if your lender’s investment goes up in smoke (literally or figuratively), it’s in the lender’s best interest to have a backup plan. That backup plan is requiring you to buy homeowner’s insurance.

Related: First-time homebuyer information

How Do You Prove That You Have Insurance?

Your lender won’t let you take possession of the house – in most cases – until you’ve proven that you have homeowner’s insurance. You do that before you close by showing your policy to the appropriate official working for the lender. Most lenders want to see it at least a couple days before you close on the home.

What if You Don’t Need Insurance?

If you’re not borrowing money from a lender to buy a home, you probably aren’t required to buy homeowner’s insurance. However, it’s probably a good idea – just like having any other type of insurance is a good idea. There are so many “what-ifs” involved in home ownership, and you don’t want your investment to disappear because of a natural disaster, fire or accident, and you definitely don’t want to be hung out to dry if someone burgles your home.

Are You Buying or Selling a Home in Lakewood?

If you’re not already living in Lakewood, or if you are but you’re looking for a new home, we’re here to help. Call us right now at 562-882-1581 or start browsing our Lakewood real estate listings to find your dream home today!

You can also browse:

Long Beach real estate listings

Anaheim real estate listings

Bellflower real estate listings

Signal Hill real estate listings



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