Home Insurance

Why do mortgage companies, banks and finance companies require home owner’s insurance?

Because they technically own your home and want to be sure that they get paid for the mortgage loan plus interest, even in the event that the house burns down. The insurance will cover the costs to replace the house, and ultimately the home owner will be able to continue to pay the mortgage or sell the house.

Insurance is designed to help you recover from tragic events such as fires and floods. It is best to file insurance claims only in cases when you cannot easily afford to repair or replace what you have lost.


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