Sunday, December 6, 2009
Insurance: Don't get caught without it
By Lew Sichelman
Posted by Alma Zhumagulova
Insurance is one of those things you don't need until you need it. But by then, it's often too late. Every homeowner knows –– or at least should know –– that they should carry a homeowner's policy. Indeed, mortgage companies require coverage.
But did you know that if you allow your policy to lapse, lenders retain the right to purchase a policy for you? That can be an expensive proposition, because "force place" coverage can easily cost two or three times what you would pay on your own.
Because insurance protects the underlying collateral for your mortgage, lenders can even go so far as to foreclose if you refuse to carry insurance.
But there are all kinds of other coverage over and above your standard homeowner's policy that you also may want to consider. "There are lots of things people don't think about until after the fact," said Chad Mirock, product manager for opportunity lines at Travelers in Hartford, Conn.
Here's a rundown:
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