Do you need a home insurance policy if you don’t have a mortgage?

An improving economy and a reluctance towards carrying a lot of debt has motivated many Harrisburg, PA residents to pay off their mortgages.  The end of monthly mortgage payments, however, also means an end to mandated tax and insurance payments into an escrow account.  Without this account in places, many homeowners foolishly decide to save money by giving up their homeowner’s insurance.

Homeowner’s insurance is the only thing that protects many Harrisburg, PA residents from financial ruin. All too often, people make the mistake of assuming that they have enough in savings to cover any loss to their home.  Instead, many people discover too late that a series of disasters has destroyed their personal finances.

The truth is that it’s relatively rare to have enough in savings to cover the complete loss of a home.  While it’s more common for people nearing retirement to have enough in savings to cover minor emergencies, a total loss of a home is a devastating financial blow.  Furthermore, many people tend to underestimate the cost to repair a home after a natural disaster or other large-scale event.  These events cause disruptions to supply chains, driving up the costs of materials and labor. The result is that home repairs are often much more expensive than the cost to rebuild a home.

While a disaster might not happen immediately after dropping home insurance coverage, a single emergency can wipe out a family’s savings.  Keeping a basic level of coverage on a property along with significant savings is a good way to avoid financial disaster.

If you’re looking to save money on your home insurance, or if you’ve dropped coverage in the past and are now looking to get protected again, call our agents today. They have years of experience helping people just like you find a policy that offers great coverage at a price that is right for their budget.