Who Requires Home Insurance?

When you are looking to buy your next home, many important factors need to be taken into consideration. One of the factors that needs to be considered is your home insurance needs. While most people are aware that having home insurance is a good idea as it provides valuable coverage, there are several situations in which having a home insurance policy in place will be required. 

Mortgage Requirements

The first situation in which you will need to have home insurance in place is when you have a mortgage. Most people in the Ashland, KY area will need to take out a mortgage to finance the majority of their purchase price. Having a home insurance policy in place will always be a requirement of any mortgage lender. Depending on where you live, you may also be required to get flood insurance. In many situations, the mortgage lender will also require that you have your payments escrowed on a monthly basis to ensure you stay in compliance.   


If you live in an area that has a homeowners association, such as a condo development, the association documents will often have a stipulation that will require you to carry home insurance. This will help to ensure that you are covered by insurance in the event you or your home causes damage to another property in the association.  

For those that are in the Ashland, KY area, having a quality home insurance policy in place is important. Sharp Insurance & Financial Services will be able to help a local homeowner better determine their insurance needs and requirements. Sharp Insurance & Financial Services will also be able to help them get into a policy that will provide them with the right type and level of home insurance coverage. Try our online rating tool for a quote on home insurance.

A Beginner’s Guide to Home Insurance

Purchasing a new home insurance policy can be overwhelming, but there are a few simple things to keep in mind when getting your home insurance from Sharp Insurance & Financial Services.

Doing some research on insurance terms will help. For example:

  • Actual cash value is the cost to replace or repair your property.
  • The deductible will be your out-of-pocket expenses before the company pays.
  • Floater is coverage that is added to your policy for things like antiques or jewelry.

Some things may affect your rate that you can’t control, so it’s helpful to find out how much insurance will cost before you buy a home. You need to consider your home’s electrical system, plumbing, and overall structure. For fires, the Insurance Service Office (ISO) sets your insurance premiums based on its fire protection class of your town or city on a scale of 1-10. This scale is determined based on the city’s water supply and the number of fire stations.

Not everything will be covered by a basic insurance policy so always know what is covered and what isn’t. Keep documentation of the value of important items in a safe place.

In Ashland, KY, you can participate in the National Flood Insurance Program for additional flood insurance. If you work in the mines, the Kentucky Mine Subsidence Insurance Fund offers reinsurance against the collapse of an underground coal mine.

Beware of your backyard as well. Swimming pools, decks, and trampolines can also increase your liability and insurance premiums. Your dog could also affect rates; certain breeds like German Shepherd may lead to higher premiums, and you could be liable in case your dog bites someone.

Remember to review your policy on a yearly basis. To save money, consider raising your deductible or ask about any discounts.

For more information about a specific policy for your home, contact Sharp Insurance & Financial Services, serving Ashland, KY, at (606) 324-0696.