You have probably heard many times that home insurance is important. However, you might be wondering whether it’s required by law in North Carolina. The answer is no. Home insurance isn’t required by law here or in any other state for that matter. Still, calling it a “necessity” would be accurate, since it protects you financially if a disaster or significant damages to your property were to occur.
Here are a few reasons why home insurance is necessary:
- Mortgage lenders usually require it- When you take out a mortgage for your home, you’re borrowing a massive amount of money. That means your mortgage lenders are risking a lot. If you fail to make payments, they can recoup their loss by foreclosing, or selling your home. But if your home is destroyed in a natural disaster and you don’t have home insurance, then there’s no house for them to sell. In other words, home insurance protects both you and your mortgage lender.
- North Carolina has plenty of natural disasters- From floods to hurricanes, North Carolina has no shortage of natural disasters, and these can do significant damage to your home. For instance, water damage can cause your wood to rot, while high winds can rip off your roof shingles. Because you live in a disaster-prone state, getting home insurance is a must.
- It can pay for more than just repairs- If your house gets damaged and you have home insurance, you may also be able to pay for your damaged belongings or for the cost of a hotel while you wait for your home to be repaired.