Do Your Home Insurance Needs Change Once Your Home Loan is Paid Off?

Many people dream of the day that their home is paid off. However, when that day finally comes, you may have one important question. Do your home insurance needs change once your home is paid off? After all, you are not required by the bank or lender to carry home insurance any longer once you have paid your debt to them. Here is a bit more information you may want to know about this topic.

Can You Afford to Replace Your Home?

When you are wondering if your home insurance needs change once your home is paid off, you need to consider your financial situation. For most people, their home is their largest asset. If the home that they just paid off were to burn to the ground or become severely damaged, they would not have the money to simply buy another one and have that one paid off, or if they do, it would severely impact their retirement or financial situation. Home insurance covers the value of the home in case something like this were to happen, helping to give people peace of mind. As such, most people should still carry home insurance, even if their home is paid off. And regardless of whether the home is paid off or not, you should have enough insurance that you can replace the home and the items inside if the worse case scenario were to happen to your home.

Regardless of whether your home is paid off or not, Insurance Center of Green Valley would love to help you with your home insurance needs. If you need home insurance in the greater Green Valley, AZ area, our agents would love to talk to you about your needs and draw up a policy that is ideal for your situation. Give us a call to get started today.