Have you ever wondered what happens if you don’t have homeowners insurance? Since California law doesn’t require homeowners to have this coverage, it shouldn’t impact you too much, right? Well, you must understand the consequences of not protecting your property with the appropriate financial coverage. Keep reading to discover what can happen if you don’t have this insurance plan.
Your Mortgage Could Default
When you purchased your home, you may have seen a clause stating you needed a minimum amount of home insurance to receive a homeowner loan. If you fail to acquire insurance or allow it to lapse, your lender will be notified, and your mortgage could default. Since you violated your contract, the mortgage lender can do the following:
- Find a new insurance provider (aka force-placed insurance)
- Refuse to cover your personal items
- Foreclose your home
You Lack Liability Protection
Without homeowners insurance, you leave yourself, your property, and your finances vulnerable. If someone gets hurt on your property, you are responsible for their injuries. It doesn’t matter if they’re neighbors, friends, or trespassers; you are accountable for paying for their hospital visits and legal fees. You’re also responsible for accounting for the time they miss at work due to injuries.
Financing Your Home Could Be Difficult
Getting approval from a lender could be difficult if you want to refinance your property. They will ask you to show proof of insurance to secure mortgage financing. You must carry enough homeowners insurance to cover expenses in an emergency.
Suppose you live in a location with high risks for natural disasters, such as earthquakes or floods. In that case, purchasing additional coverage ensures you can replace or repair damage. More likely than not, lenders will require you to buy homeowners insurance to protect all assets.
Your Property and Personal Items Are Unprotected
What else happens if you don’t have homeowners insurance? Your property and personal items are unprotected from unforeseen incidents, including burglary, natural disasters, and housefires, especially while you’re away from home. Homeowners insurance covers more than the structure of your home—it helps you replace or repair your property and valuable items. Without insurance, you must pay out of pocket.
Save yourself from stress and financial burden by acquiring homeowners insurance. You can protect personal items, property, and finances by finding the perfect premium. If you’re searching for cheap California homeowners insurance, you’re in luck! Saferoad Insurance offers high-quality coverage and bundles services like boat, RV, auto, and business insurance! Contact us for more information.