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Why Do I Need Homeowner’s Insurance?

You need homeowner’s insurance for several reasons. The most important reason is it protect you the homeowner. If heaven forbid your home burns down who is going to pay to rebuild your home? This week the cost per square foot for homes sold in Redwood City averaged $655/sq. ft.! That means based on the cost mentioned above your 1500 sq. ft. home would cost $982,500 to rebuild at the current square footage cost.

Myself, I don’t have about a million dollar to rebuild my home. Not many people do. This is why the second reason for homeowner’s insurance. Your lender will not loan you the money to buy your home unless you get homeowner’s insurance, same times called fire insurance for obvious reasons.

One of the conditions of any and all loans from a major lender will have a clause in their instruction to the escrow officer, which says do NOT record the deed of trust with the County Recorder’s Office unless there is a statement of insurance by an insurance company with a certain monetary coverage. In other words…no homeowner’s insurance no loan from the bank.

If you pay CASH for your home then yes you are not obligated to get any homeowner’s insurance. If you pay off your home loan at the end of the 30 years term you don’t need to continue to buy and pay for homeowner’s insurance. Prudent or not homeowner’s insurance is not required in only those two scenarios.

One final reason for maintaining homeowner’s insurance is for when someone gets hurt on your property. Even if it may seem to be their fault for their injuries they can still make your life miserable. You know you don’t have to be right to be sued.

It is always a good idea to be protected by a reputable insurance carrier and Broker. It will only take one claim for you to realize how important and helpful they are in a time of need. Ask any person whose home has been destroyed by a tornado, a flood, an earthquake, or some other act of God. If they had the proper coverage they were happy after the catastrophe where their home was destroyed.

If you would like to have a Team in your corner so you are protected against your home being destroyed please call Cliff Keith and Team. We have been helping homeowners and home buyers with their real estate needs since 1976. Our referral for the proper vendors to help our clients is unsurpassed by none. We are the resource center for the needs of our clients for all their real estate needs.

Call Cliff Keith and Team today at 650-346-7366 and see how we may help you too. Over our life in real estate we have helped over 400 homeowners in one way or another. We can help you too.