When is home insurance a requirement?

The biggest asset that a lot of people will ever own is their home. Those that purchase a property can see significant equity growth over time as they pay down their mortgage and see their property slowly increase in value. If you are going to purchase a home in the Plano, TX area, you will want to ensure this investment is protected with home insurance. There are several reasons why having this insurance could also be a requirement for you.

Insurance is a Lender Requirement

Most people that buy a home in the Plano area will take out a mortgage so they can finance the purchase of it. If you do this, it will likely allow you to purchase a larger and more expensive home. However, you will have some obligations that need to be met. One task that you will need to do consistently will be to get proper insurance for it. The lender will likely review your insurance, approve it and then even escrow your monthly payments.

When in a Home Association

Another common situation when people in Texas will need to get home insurance will come when they live in a home association. Property associations are very common, particularly for those that live in newer communities that offer local amenities. If you do live in one of these communities, you will have insurance obligations. Most of the time, you will have to provide evidence of coverage at least once per year.

There are plenty of reasons why you should get insurance for your home. Even if it is not required, those that are in the Plano, TX area should speak with the Paragon Independent Insurance Agency about their needs. Paragon Independent Insurance Agency can help you build a policy that will provide necessary coverage.