If you have a mortgage, your lender will require you to buy homeowners insurance to protect their interests. However, if your home is paid off, your bank will no longer care, and there is no legal reason you must buy insurance. Under such circumstances, many people wonder if homeowners insurance is a necessity. Steven Hall – Farmers Insurance, the leading seller of home, auto, health, and life insurance in Mountain Grove, MO, offers three crucial reasons why you shouldn't drop your home insurance policy the minute you make your last mortgage payment.

Why You Need Homeowners Insurance Even Without a Mortgage

1. Protect Your Investment

Your home is likely your most important and valuable asset. Therefore, it makes good financial sense to protect your investment. Fires, windstorms, electrical storms, floods, tornadoes, and earthquakes may be unlikely, but they are all real threats that destroy countless homes every year. If you forego proper coverage, you could find yourself homeless without any financial recourse. For peace of mind alone, the protection of home insurance is well worth the price.

2. Don't Forget Your Personal Property

Homeowners insurance covers more than the structure of your dwelling. A storm or fire could wipe out all your personal possessions as well. Dwelling contents coverage reimburses you for the loss of appliances, furniture, electronics, clothing, tools, and other belongings. To insure artwork, collectibles, or expensive jewelry, you may have to buy additional coverage specific to those items, but the cost is usually slight and the security it offers is profound.

3. Guard Against Liability

Lastly, homeowners insurance protects you against liability if someone is injured on your property, or if you, your pet, or a family member injures someone or damages their property. It pays for medical bills, as wells as replacement or repair costs for damaged goods. Moreover, it pays your lawyer fees, court costs, settlement amounts, and judgments against you if you’re sued.

Steven Hall – Farmers Insurance in Mountain Grove, MO, can help you design a homeowners insurance policy that meets your precise lifestyle and financial needs. Visit the website for contact information, or call (417) 926-7900 to discuss your options with a friendly, knowledgeable professional.