Homeowner’s Insurance: Key to Purchasing Your Dream Home. The insurance contract is a pact between two parties: one pays to mitigate the risks and uncertainties of the future, while the other receives payment today in exchange for assuming the costs of damages associated with those risks should they occur tomorrow. In essence, insurance is a risk transfer transaction. By selling future risks, we achieve certainty and peace of mind today.
That’s why many view insurance as a cornerstone of economic development, providing investors with confidence by financially covering potential acquisition risks or business ventures. Under this premise, lenders feel comfortable extending mortgages to those in need, knowing that the property, despite potential disasters like fire, cyclones, or floods, is insured.
If insurance were to vanish from the equation today, it would trigger a domino effect, jeopardizing investors, businesses, mortgages, and dismantling our development model.
These insights are particularly aimed at first-time property buyers in the US, helping them grasp the fundamental role of insurance in the transaction. While we often focus on factors like down payments, credit history, interest rates, income, property features, location, and price, we sometimes overlook that without adequate insurance, property acquisition is unattainable.
For lenders to approve a mortgage, they require a comprehensive insurance policy covering natural disasters, fire, hail, lightning, various property structures, and systems. This insurance must provide sufficient coverage to ensure property reconstruction costs or reach its market value, while also safeguarding the insured’s personal property, including clothing, appliances, and furniture.
In summary, homeowner’s insurance is not an afterthought when purchasing your dream home; involving a Univista Insurance agent from the outset of the buying process ensures that the most significant transaction of your life concludes successfully. Homeowner’s Insurance: Key to Purchasing Your Dream Home.
Give us a call today for a thorough assessment! Dial (305) 267-7138. You can also get a free quote here.
