Buying a Home? Why You Need Homeowners Insurance Rather Than Renters Insurance

Buying a home in Amarillo, TX, is a major purchase, and it’s important to protect your new home against potential damage. While renters insurance may provide protection for you and your belongings, you’ll need homeowners insurance to protect against damage to your house.

Insurance Requirements for Your New Home

If you’re financing the home purchase with a mortgage, the underwriting lender will require you to carry certain homeowners insurance coverages. Generally, you need to protect the house at least up to your remaining mortgage balance.

Of course, homeowners insurance is strongly recommended regardless of any lender requirement. Your house is likely your most valuable asset, and few new homeowners could afford to make major repairs if it were damaged or destroyed.

Renters Insurance’s Protections

Renters insurance may provide the protections you need when leasing a residence. Renters’ policies regularly include personal liability coverage for you and personal property coverage for your possessions.

Renters’ policies don’t cover the building you’re living in. It is your landlord’s responsibility to insure the building.

Homeowners Insurance Adds Structural Coverage

Homeowner insurance can also include personal liability and personal property coverages. It also adds structural coverage to your home. There are at least a couple of important coverages that a homeowners policy could add:

• Dwelling Coverage: Normally insures your house itself against damage.
• Secondary Structures Coverage: Normally insures other structures on your property.

At West Texas Insurance Agency, we can help you determine whether to include secondary structure coverage in your policy.

Find Homeowners Insurance

If you’re purchasing a home in Amarillo, TX, you’re going to need homeowners insurance. Let us at West Texas Insurance Agency help you find a policy.