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8/5/2011 - Is homeowners insurance required?

Many mortgage lenders require insurance after a home is sold.

In just about every state, if someone wants to drive, they not only have to be over the age of 16 but they also have to carry auto insurance. Some may wonder if the same insurance rule applies to people wanting to buy a place of their own.

According to the Insurance Information Institute, there are no state laws requiring individuals to purchase homeowners insurance if they want to buy a property. However, it's a different story when it comes to mortgage companies, which potential homebuyers often turn to when they want to purchase a house.

As a general rule, lenders typically require applicants to have a homeowners insurance policy in place before approving a loan, so if the home is damaged, the lender's investment is protected.

While a homeowners insurance policy may differ among carriers, they typically include coverage for the structure of the home, personal property and liability protection. Each coverage policy has a limit, but policyholders can increase them if they so choose.

So make sure you’re covered with homeowners insurance from Selective, with protection that includes your home, personal property and liability coverage. Selective also offers variety of optional enhancements including increased theft coverage on jewelry, coverage for lock replacement, refrigerated property, water back up, lost credit cards, identity theft and more. To learn more, click here or talk to a Selective agent today. 

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