When mortgage lenders lend you money to purchase your home, they, in essence, co own that home with you. They are going to want to protect that home as well as you are, if not more so. They will let you know what type of coverage you need to have to protect the value of the home. In the event of natural disaster, the damages will be covered as long as you have the right coverage through home insurance.
- Your mortgage lender will probably require proof of homeowner’s insurance before you can close on your house.
- Your insurance policy can protect you from fires, theft, frozen systems, and falling objects.
- If your homeowner’s insurance policy is already prepared, your lender can set up an escrow account for you that will make your payments easier.
“If your home requires additional coverage, your home insurance company will have add-on riders and policies that can supplement your general homeowners policy.”