Gaynor Salas: Hi. Good morning. My name is Gaynor [Salas 00:00:03]. I’m an insurance agent working for the Holding Rate Insurance Group in the Winston-Salem location. Today, I’ll be answering one of the most popular questions regarding homeowners’ insurance. The question is, “When homeowners’ insurance is required?” Very, very common question, and very important question. And the answer depends very much in how you acquired this dream home, your home.
Let’s said that you purchased the home using a financial institution, using a loan service company. So, the answer will be it is a must, all banks will require you to place homeowners’ insurance on the house. The banks want to protect their investments, and they will not let you go without.
Or B, if you purchase the home using your own funds, it’s totally up to you. But, I will suggest to think the same way as the bank does. They want to protect their investments, I think you want to protect your own investment too. Remember, this is the investment of your life, and you don’t want to lose it because you decide not to put homeowners’ insurance on it.