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Why do I need homeowners insurance? |
- Insurance provides you financial protection from the risk of loss of your investment in your home.
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Does the law require me to have homeowners insurance? |
- You are not required by law to have homeowner insurance if you have no mortgage on your home.
- If you finance your purchase with a mortgage, your lender will require you to have insurance in order to protect their investment in your home.
- Some financial institutions require flood or earthquake insurance if you live in an area that is vulnerable to such disasters.
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What is homeowner's insurance? |
- Homeowner's insurance is a package policy that covers damage to your property and your liability for injuries and property damage that you, your family, or your household pets cause to others.
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What is a standard homeowner's policy? |
- A standard policy includes four types of coverage: (1) structure of your home; (2) your properties; (3) personal liability; and (4) additional living expenses if you are temporarily unable to live in your home as a result of a disaster.
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How does a condo or co-op policy differ from homeowners? |
- The condo or co-op board often provides a “master policy” that covers liability and physical damage in common areas shared with others, such as lobby, walkways, roof, basement, elevator, and boilers.
- If you purchase a condo or co-op, the financial institution may require you to have additional insurance in order to protect their investment.
- You may need more insurance to cover your personal possessions, liability, and additional living expenses in the event of a disaster.
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What does cancellation and non-renewal mean? |
- A company may cancel a policy only for your failure to pay a homeowners insurance premium or if you committed fraud or misrepresentation on your application.
- Non-renewal is a decision made by either you or the company not to renew the policy when it expires. In some states, the company must provide you a certain number of days advance notice and explain the reason before it drops your policy.
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