Money is a little tight lately and the homeowner is looking for ways to trim the household budget. With the next payment for the Home Insurance in Spring TX due in a couple of months, the idea of allowing it to lapse has come to mind. Here are some of the reasons why allowing the policy to lapse is the last thing the homeowner wants to do.
Placing the Mortgage in Jeopardy
Depending on the terms found in the mortgage agreement, the lender may require that the debtor maintain Home Insurance in Spring TX for the duration of the loan. Choosing to allow the policy to expire could cause problems with the lender. Keep in mind that until the mortgage is settled in full, the lender has a claim on the property. Attempting to get by without insurance increases the risk for everyone, including the lender. Unless the policy is renewed or replaced quickly, the lender may choose to call the loan early.
Dealing with Severe Damage to the House
With no insurance in place what would the homeowner do if some accident or act of nature causes severe damage to the property? For example, what if the brakes failed and the car crashed into the garage door? If a severe storm ripped off quite a few shingles, how would the homeowner deal with having repairs made to the roof? The money saved by allowing the policy to lapse will pale in comparison to the out of pocket expense if only one serious event were to take place.
Accidents do not necessarily focus on damage to the property. What would happen if someone were injured as the result of negligence on the part of the homeowner? The legal fees, medical expenses, and other costs could mount up quickly. The total cost from one accident could easily leave the homeowner with no choice but to liquidate assets and declare bankruptcy.
For those who are trying to get by without home insurance, visit us today. There are plans that are affordable and offer a reasonable amount of protection. Securing one of those plans will minimize risk and make it much easier to sleep at night.