Any homeowner needs to make sure that they have adequate coverage on their home insurance policy, but how does that change if your home is paid off? If you are a Lakewood Colorado home owner and you have finally made that last payment on your house or condo — or if you are getting very close to paying it off and being debt free — it is definitely time to reconsider your home insurance needs. Here are some tips about dealing with home insurance when you own your home outright.
How Owning a Paid Off Home Changes Insurance Needs
When you own your home outright, you are more invested in it than you have ever been before. For most people, their home is the biggest asset that they have, and when the house or condo is paid off that asset needs to be protected more than it ever has before.
When you still owed money on your home, the focus of your insurance policy may have been to make sure that your coverage was sufficient to pay off your mortgage, and to rebuild a new home, in case the home was destroyed. However, once you own your home outright you will no longer have the concern about paying off the mortgage. This means that you could potentially lower the amount of home insurance that you carry — but it is vital that you discuss amounts with your independent agent before making any changes.
Now that you do own your home, it is especially important to be prepared for disaster, just in case. Carrying an insurance policy large enough to rebuild your home — or to buy a comparable new home for cash — should now be your top priority when it comes to home insurance. If something happens and your home is destroyed, or even if you suffer from a serious loss of property, you want to be able to pay for the problem to be rectified, and to remain debt free.
When you are ready to buy insurance for your paid off home, be sure to get comparison quotes from an independent agent that gives you all the info you need in one single place online. This gives you the opportunity to get the best price, while still having the coverage level you need!