Santa Fe Homeowners Insurance

Santa Fe homeowners insurance has to be purchased by most individuals before they are able to purchase a home in the Santa Fe area. You request a loan from a bank, that bank will check your credit scoring and do all kinds of research and information gathering to determine if you are trustworthy enough for them to give a home loan to. If they determine that you are trustworthy enough, they will agree to give you the loan on one major condition; that you provide proof of NM homeowners insurance. This is so that the Santa Fe bank is not going to be out any money if the house burns down or something happens that could compromise your payment ability. In order to best determine what instances could call for the necessity of Santa Fe homeowners insurance, you need to understand what situations might require it. Though this will not make you an expert on Santa Fe homeowners coverage, it will at least give you the basic working knowledge of what is required of Santa Fe homeowners insurance and why.

Though there are literally millions of instances that could call on your need for Santa Fe homeowners NM insurance, you do not need to know about all of these kinds. Instead, you just need to understand some of the more common or the more possible instances that could result in you having to file a New Mexico property insurance claim. This will also help you better understand why banks require you to purchase Santa Fe homeowners insurance before they will approve you and your home for a loan.

A Hypothetical Lesson

Let's say that you just bought a home. It is a relatively nice home for it to be your first residence after you and your spouse were married a few weeks ago. You move in and everything is fine. However, you decided to never purchase any Santa Fe insurance for your MN home. You have never liked homeowners insurance and have always thought that it was a huge waste of money. Several months pass and you periodically do calculations of how much you are saving by not purchasing a New Mexico homeowners policy. Because the Santa Fe home that you purchased was brand new and both you and your spouse have excellent credit scores, so the bank did not require you to purchase any Santa Fe homeowners insurance.

So far, you estimate that you have saved nearly $2500 on Santa Fe homeowners insurance using a home owner policy calculator, so you feel pretty good about the decisions that you have made financially. One morning, you decide to take your spouse on a breakfast date. You get ready and the two of you head to breakfast. Your spouse was so excited about having breakfast that they left the coffee maker on while it was right next to some new paper towels that you just bought. While you are enjoying a tasty meal of eggs and a tall glass of orange juice, the ceiling fan blows one of the paper towels onto the coffee maker, which is scalding hot.

Starting a chain reaction, the paper towels catch fire, blazing up to catch the curtains on fire. From there, the fire reaches the ceiling and really starts to blaze. Luckily, your neighbor had been eating breakfast on his porch and saw the fire through the window. The fire department arrives minutes later just as you and your spouse return to your home. After some preliminary estimation, you figure out that it is going to be over $8000 to repair all of the damages that were done as a result of your negligence. Since you do not have any Santa Fe homeowners insurance, the entire bill falls to you.

The NM Insurance Arrogance

This means that the $2500 that you have been so tedious to save has now been flushed down the toilet along with an additional chunk of change that you do not have. Because you did not get any Santa Fe homeowners insurance for your home, you could potentially lose all of your savings and have to take a second mortgage out on a house that you have only lived in for a few months and have barely paid any of the principal off yet.

Of course, you might just think that you could be careful and avoid getting into any trouble. However, they are called "accidents" for a reason. What is more is that if you are the most careful person in the world and never cause any damage or neglect anything, a simple lightning bolt could still do you in. Make sure that you have the proper Santa Fe homeowners insurance for your home or you might find that you will regret it later on when you actually could use the homeowners coverage.

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