Cleveland Homes - Do You Need to Pay for Homeowners Insurance?

Many people wonder if it is mandatory that they purchase homeowners insurance, and if you use a Cleveland home loan to purchase your property, it most certainly is. The reason is that bank lenders want to make sure that their investment is protected from any acts of nature.

Essentially, when you take out a Cleveland mortgage what you're saying is it you will hand over the home in order to have the bank offer you a loan, with the bank being able to seize the home if they are not paid off. While the lender can get most of their money back through foreclosure proceedings, they are much more concerned about losing a $200,000 home to a tree crashing on it, water damage, fire, or flood. After all, a Cleveland mortgage lender cannot collect blood from a stone.

Unless you go to an incredibly stupid lender, you will always have to get a Cleveland mortgage in order to buy a home, or at least enough to protect the mortgage lender stake in the home.

Besides the lender, you have a need to protector yourself, as if you've put $20,000 cash down payment on the property, this could all go up in smoke in a matter of minutes. Thankfully selecting a type of Cleveland home owners insurance is not a difficult process, and the two basic decisions you must make is what exactly you want covered and which are willing to pay as a deductible amount.

So what exactly is a Cleveland home owners insurance deductible?

A deductible is the amount of money that you will pay in order to have a claim processed. For example, if you have a $200 deductible on $20,000 with a fire damage, you will have to pay $200 in order to receive the insurance money. The reason that insurance companies charge deductibles is to make sure the people don't file frivolous claims which will waste their time and money.

What you want covered is variable, as you may want to choose to have your personal possessions insured, and many types of insurance such as floods, earthquakes, and mudslides won't be included in a typical homeowner's policy.

It is usually a good idea to protect your Cleveland homes contents, as you probably have more stuff lying around than you think. So what kind of things can happen that you can't be protected against?

Fire and lightning damage are quite frequent, and will be a common occurrence depending upon the area of the country that you live in. Explosions from gas lines can also be a problem, as well as a car accident ually ramming through the wall of your Cleveland home.

When many people think of fire, they don't think of smoke damage, which can leave your home and possessions roomed, and theft and vandalism are also concerns when you purchase a home. Glass windows can be broken easily, and snow can easily collapse in a roof.

The truth is that there are many more acts of nature that can happen to your Cleveland property, so it is a good idea to protect yourself in the event of such occurrences. It is true that there might be quite a slim chance of any one of these events happening to you, but if they do a it will be devastating. For this reason, it is a good idea to purchase Cleveland home insurance in order to protect your investment in the property, as well as the bank lenders.