Why You Need Home Insurance For a Home Loan

A common insurance policy that homeowners take in Little Falls, MN, is a homeowner’s insurance policy that protects their personal possessions. If you decide to buy a property through a bonded loan or a mortgage, a financial institution may require you to have homeowner’s insurance before it even considers your application.

Hanneken Insurance Agency Inc. seeks to lighten the burden of homeowners who use loans to buy their dream houses. Mortgage providers face several risks when they lend money to home buyers. One of them is that a borrower may fail to pay the home loan back, leading to foreclosure to recover the loan. It raises the need for banks and borrowers to protect themselves from financial loss.

Another significant risk is that a property can be damaged or destroyed while bonded. In this case, the buyer, you, and your bank are affected. Although the bonded property is damaged extensively, you still have to repay the mortgage. It places a heavy burden on you and hurts your budget, something that you need to avoid.

If you become unable to clear the home loan, your bank may lose in that the property is no longer there to serve as security against the mortgage. For this reason, a homeowner’s insurance policy is essential to protect you and your mortgage provider. The policy provides coverage for the bonded property, not its contents.

If a fire or anything destructive causes severe damage to the bonded property, the homeowner’s insurance should pay for the property loss and repay the home loan, too.

KEY TAKEAWAY

A bonded property faces many risks, including fire, storms, non-repayment, etc., leading to a financial loss to you and your bank or financial provider. A home insurance policy is necessary to protect yourself and the financial institution.

Interested in knowing more about how you can protect yourself when you take a home loan? Contact Hanneken Insurance Agency Inc. today.

Should I get auto insurance in Little Falls?

The Little Falls, MN area is a great place for someone to work and live. While there are a lot of advantages that come with living in this area, the location and layout of the city make it a place where owning a car is a practical necessity. If you are going to purchase your next vehicle here, you also need to get proper insurance for it. You should get this coverage and keep it in place when you have a car. 

Insurance Will be Required

An important reason to get auto insurance when you are in this area of Minnesota is that it will be a requirement for you. Any driver in the state needs to carry auto liability insurance at all times. People that do drive a car without this insurance are often caught and penalized, which could include losing a license or other privilege. Additionally, anyone that has an auto loan will have to maintain a full policy until the loan is repaid.

Insurance Protects Car Owner

Even if you did not have requirements for insurance, you should still get it. With an appropriate insurance policy, you are going to receive coverage for liability and your asset. This can help to ensure you are covered and protected in several different challenging situations. 

Those that are going to move to the Little Falls, MN area and are in need of auto insurance should call the team at Hanneken Insurance Agency Inc. When you do call Hanneken Insurance Agency Inc. you can get a lot of guidance and support that will be necessary to ensure you pick the right insurance policy. There are many options available to you and the team here will help you build a policy that properly addresses your needs.