Washington property insurance protects privately owned real estate. It is often mandatory for properties with financing, but even without a mortgage, it is important to purchase coverage. Below are details on why you need property insurance.
Your residence is one of the most important investments that you may make in your lifetime. As a property owner, you also have specific responsibilities and risks. A loss can be tremendously expensive and will significantly affect your living situation in addition to your personal finances. Think about it,... if a major disaster occurs and the entire home is destroyed, can you afford that loss? Can you rebuild on your own without any insurance proceeds? For most people, the answer is no. This is why insurance is so important.
Property insurance can offer a wide range of coverage. It can cover damages to the structure, belongings within, accidents on the property, accidents involving the homeowners, or weather related damages,..just to mention a few. Each of the above have certain restrictions. Some come standard with a policy and others are add-ons (or may not be purchased at all, in some cases). The location of a home, such as those in high-risk natural disaster zones, can sometimes limit available options. Homeowners should take the time to understand what is covered in their policy.
For real estate with mortgages/liens, the insurance coverage must typically be equal to or higher than the balance of the mortgage. Mortgage companies mandate this insurance to secure the amount of money they have loaned to you. Thus, their information will normally appear on the policy.
The charge for property insurance depends on the dollar value of coverage, the particular insurance provider, the value of the home, the region of the property, the amount of your deductible, and other factors. Some companies extend discounts for items such as security systems and other safety features. Another possible discount is to buy other policies, such as auto insurance, from the same provider. Policy premiums are generally invoiced annually and payable in advance. For homes with mortgages, monthly increments may be placed into an escrow account with the lender. This is a way of making sure that you have funds available for the annual premium and that your coverage does not lapse.
Property owners have the right to select their preferred insurance provider. Additionally, they can switch providers at any time. As with any type of service, it is not always about value. Property owners should look into the types of coverage and other services offered by Washington Property Insurance companies. When incidents happen, it will be a very stressful time. Having a company that makes the claim process easy and provides quality customer service can be worth an extra expense.