Why Do I Need Homeowners Insurance for a Mortgage in Nebraska?

You'll need to provide proof of a homeowners insurance policy as part of the closing process. The lender putting up most of the money to purchase the home. Homeowners insurance gives the lender peace of mind knowing that their asset is protected. In the event of something tragic like a fire or natural disaster, and you didn't have homeowners insurance, your lender would lose out. The requirement protects you and your lender. 

How Much Homeowners Insurance Coverage Do I Need in Nebraska?

This is one of the most common questions we receive. Your lender will require that you purchase enough coverage to cover the amount of your loan. If you purchase a $220,000 home with a $20,000 down payment, then you’d be required to carry $200,000 in coverage. 

Additionally and depending on your unique situation, the lender may look at the replacement cost of the home vs. the market value when determining the amount of homeowners insurance coverage you should carry. 

“An often overlooked part of the homebuying process is how important it is to have proper insurance coverage," says Shawn Shea, NR Insurance

If you’re able, you may want to carry additional homeowners insurance coverage to protect more than the structure of your home. You can discuss this with your insurance agent. 

Hazard Coverage

Hazard insurance covers the structure of your home and helps you repair or rebuild if your home is damaged from fire, hurricane, hail, lightning, or other listed disaster. A typical homeowners insurance policy usually does not cover damage due to earthquakes which we normally don't experience in Nebraska. But, as these past few years have shown us, we are susceptible to flooding. Detached buildings like barns, garages, and sheds are also covered through your hazard coverage.

Additionally, hazard coverage will help you replace personal belongings, such as furniture, clothes, jewelry, electronics, etc., if they are stolen or destroyed. What many homeowners in Nebraska forget is that their personal property is protected inside their home, as well as off-premises — anywhere worldwide. 

Liability Protection

Homeowners insurance coverage can also encompass the costs associated with bodily injury or property damage that you or your family cause to other people. If your son hits a Wiffle ball across the yard causing damage to a neighbor's window, liability protection can cover the cost of replacement.

Additional Living Expenses

Floods, fires, and tornadoes often displace homeowners. If you are temporarily unable to live in your home during a repair or rebuild process caused by a fire or other insured disaster, your homeowners insurance policy may cover a portion of your living expenses. It's important to discuss each of these details when working with a reputable independent insurance agent. 

Why Do I Call For Homeowners Insurance in Nebraska?

We work closely with NR Insurance. Their mission is to help people achieve their financial goals, manage risk, and cross the finish line with confidence. They guide their clients so that they can have peace of mind when it comes to protecting their most valuable assets like their home, possessions, and their family. NR Insurance is not beholden to working with one company for insurance policies. They work with dozens of top-rated insurance companies so they can create customized policies for your individual situation. NR Insurance proudly serves Omaha, West Omaha, Bennington, Elkhorn, and Gretna.