There’s quite a bit of misunderstanding about homeowner’s insurance and how much protection it offers you, the homeowner. Depending on the type of loan you have, whether conventional or government funded, you’ll be required to insure your home in case of a disaster.
Before we break down the details of what homeowner’s insurance covers and who it benefits, it may surprise you to know that you’re likely under-insured. Here’s why:
Your Mortgage and Homeowners Insurance
When it comes to insurance requirements, the amount of the needed is determined by how much you own on the mortgage. That way, in case of a total loss, your lender will be able to recoup the remaining balance on your mortgage.
This may seem unfair but remember that one way that…