In many states a home cannot be purchased unless it is first covered by homeowner insurance put in place by the buyer. Proof of insurance must be presented at closing.

People usually own their homes for many years; however, even a home owned for a short time should be insured, simply because of the typical unsure nature of life. Anything could occur that could warrant a claim being submitted to the insurance company at any time. Therefore, even if a buyer is purchasing a home in a location that does not require homeowner insurance, it is still a wise move to have an active policy, even if just for the peace of mind it will bring. Statistics have shown that, in 2014, 95% of homeowners kept a homeowner policy on their home; however, only 37% of people who were renting at that time kept a renter’s insurance policy on their residence. Many renters do not realize that renter’s insurance is important because, although the roof over their head belongs to someone else, their own belongings within the confines of their rental are worth covering in case of fire, flood, or any number of other misfortunes. Over the past eight or so years, half of people owning their own homes have actually compiled lists of their belongings as documentation for their insurance companies.

Insurance is something important as a covering for many occurrences that, without an insurance policy, could be a financially catastrophic situation for an individual or family. Life insurance provides the finances a family would need in the case of the death of the insured individual, which would decrease the burden of the final expenses that would fall on the family. Homeowner insurance, as mentioned before, would help offset the cost of repair or replacement of the home, or items in the home, in the case of a destructive event.

There are many insurance companies that are happy to give perspective clients free insurance quotes for whatever type of policy the customer needs. Most companies these days do offer affordable home insurance as well as other insurance services that help take the financial worry of all the “just in case” scenarios off of the homeowner’s shoulders.

Car insurance is a mandatory type of insurance for all car owners. It is imperative to keep car insurance current at all times. If an owner does not keep his or her car insured and allows the policy to lapse from time to time, insurance companies will see that owner as a risk. This will make it difficult for the car owner to find affordable car insurance which could create an ongoing problem. Drivers between the ages of 16 and 25 are automatically categorized as a risk by insurance companies, and are typically given the highest car insurance rates. Another fact to keep in mind, too, is that every single speeding ticket a driver is given will raise their car insurance rates. Here is proof that it is always better to obey the speed limit signs!