What Does Loss of Use Mean in Home Insurance?
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What Happens if You Don’t Have Homeowners Insurance?

While motorists on the road are required to have car insurance, but not everyone has to have a home-owners insurance policy, as reported by The Insurance Information Institute. A lot of lenders have it mandatory that you acquire coverage when you initially buy your home or when you are paying off your mortgage, however, you can legally let the policy lapse in some situations. Although not paying premiums might sound enticing, think about the risks and expenses if, for instance, a natural disaster comes and demolishes your home.

If you don’t have home-owners insurance or you let your policy lapse, you aren’t covered when something happens to your home. Consequently, you’ll end up paying for repairs or replacement costs on your own. This is what’s at risk not having a home-owners insurance policy:

“You are not covered if something happens to your home.”

Coverage for damages to your property

If your dishwasher sparks and your house catches on fire while you’re running errands, or a monsoon storm damages your home’s roof or siding, you’ll have to pay for the repair costs on your own. While challenging, what happens if your house is totally destroyed in a fire or flooding? In addition to facing rebuilding costs but where are you going to live during the rebuild? Are you able to afford to rebuild your house yourself?

Your mortgage

As noted above, a lot of lenders require you to have a particular level of coverage for your home-owners insurance policy as you’re paying off the mortgage. When you let the policy lapse or simply cancel it, the lender will be notified. If this happens, you might be at risk for defaulting on the mortgage, as stated by SF Gate.

In addition to keeping your home-owners insurance coverage, it’s also important to know that the replacement cost coverage in the policy be enough to rebuild the house. This is a different value than the house’s market value or the value of the mortgage.


  1. Admin. “What Is at Risk If You Don’t Have Homeowners Insurance?e2value, 29 Dec. 2016, e2value.com/blog/insurance/what-is-at-risk-if-you-dont-have-homeowners-insurance/.

Home-Owners Insurance Quotes

From offering liability protection to you and your family to helping you get reimbursed for personal property damage, auto insurance provides many types of coverage. Learn more about Home-Owners Insurance Coverage or get a free home owners insurance quote from Klimes Insurance today.

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