| Owning land or real estate, to be in a home that a | | | | company that is paid into once a year that will insure |
| patron can call their own is in essence the dream of | | | | the property creating a safety net for floods, |
| freedom. To have a place that can honestly be called | | | | hurricanes, earthquakes, fires, or any other natural |
| one's own. To be able to worship freely how one | | | | disaster that can occur. |
| wants, to be able to protect the property that is | | | | The problem with homeowners insurance is that |
| considered ones own. To be able to go out and use | | | | people tend to get pretty frustrated with it. The |
| free speech, especially defending the things that are | | | | likelihood of losing a home to a freak weather |
| ones own. The beauty of capitalism, is that someone | | | | condition is very unlikely and usually does not happen |
| who does not have all the money to pay for that | | | | and it feels like the insurance is something that will |
| coveted property up front can go to an institution | | | | never be used. This feeling is further compounded by |
| that deals in capitol can borrow the amount needed | | | | the fact that health insurance is used all the time or |
| to buy the property. Part of the catch is that the | | | | at least once in a persons lifetime and the same thing |
| worth of the property is what is the backing the | | | | with car insurance, there is a much greater risk while |
| loan. Meaning if the borrower cannot make good on | | | | on the road of accident than a well built home has on |
| their loan, the lender has claim on the property they | | | | average. |
| lent the money to buy. | | | | With that said, there are some important things to |
| When the lender gives out there money, they are | | | | note about insurance. One it is super important to |
| confident that the money is safe because if the | | | | know the homes proper value. Having a builder or an |
| lender cannot make their payments, then they can | | | | appraiser value the home will make sure the full |
| just take the property and sell it and get the money | | | | amount is insured. Second, every policy is different. |
| back from the loan. The problem is if the property | | | | An insured person needs to recognize that it is |
| loses its value. What if a home burns down and there | | | | beneficial to shop around when it comes to buying a |
| is a two hundred thousand dollar loan on it and the | | | | policy. Some homeowners insurance policies will cover |
| borrower now has no incentive to make the loan | | | | things like electronics and precious medals kept at the |
| payments and there is nothing the bank can do | | | | home. |
| about it because no one would buy the property for | | | | Another thing that most people do not recognize is |
| anywhere near the amount they would if there was | | | | that most insurance companies offer discounts for |
| still a home on it. | | | | meeting certain criteria. Find out what the criteria is |
| The free market solution is homeowners insurance. | | | | and if it is met. Meeting discount criteria is a great |
| Homeowners insurance is a fund set up by a | | | | way to save a lot of money over time. |