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8500 Menaul Blvd NE Ste B555
Albuquerque, NM 87112

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Who needs homeowners’ insurance?

Who needs homeowners’ insurance?

At J.B. Martin Insurance Agency of New Mexico and Arizona, we think it makes sense to carry homeowners’ insurance no matter what. Of course, sometimes you must purchase a policy and you need to know when it isn’t negotiable.

No state requires homeowners’ insurance, but if you carry a mortgage on your home, you will need to purchase a policy. Banks and credit unions require this insurance when they issue you a loan. They’re protecting their risk. Technically, until you pay the mortgage off, the bank owns the home. They require you to buy homeowners’ insurance so they can reduce their own risk of loaning you money.

Here’s how that works. Since the bank graciously loans you the money and has already put itself at risk, since some people do not repay their loans, they want a guarantee that the loan would get paid in case of disaster. Homeowners insurance covers the structure of the building and other buildings on the property from named perils. The financial institution typically requires minimum coverage of H0-3, which covers most named perils.

If a named peril, such as fire or tornado, occurs and damages your home or destroys it, the home insurance covers the damage or the cost of rebuilding the home. If the bank still holds the mortgage, the insurance pays the mortgage. The bank does not lose its money and you do not need to pay out of pocket to have your home repaired or rebuilt.

Let J.B. Martin Insurance Agency serving New Mexico and Arizona help you obtain the home policy you need to protect your home. If you want to take out a mortgage, the bank will require you to buy a home insurance policy.

Our Partners

  • Aetna
  • Aflac
  • All Risks Limited
  • Allianz
  • Allied Insurance
  • Applied Systems
  • Assurant
  • Assurity Life
  • Blue Cross Blue Shield of AZ
  • Blue Cross Blue Shield of New Mexico
  • Blue Cross Blue Shield of Texas
  • Burns & Wilcox Ltd
  • Capitol Indemnity
  • Chubb
  • Cigna
  • CNA
  • Dairyland

Our Services

  • Personal Insurance
    • Auto
    • Home
    • Renters
    • Umbrella
    • Watercraft
    • Motorhomes
    • Scheduled Property (Inland Marine)
    • Motorcycle
  • Commercial Insurance
    • Term
    • Whole
    • Universal
    • Variable (Life & Annuities)
    • Annuities
  • Health Insurance
    • Traditional
    • Short Term
    • Medical Savings Accounts
    • Medicare Supplements
    • Long Term Care
    • Trip/Accident Coverage
  • Retirement Plans
    • Traditional IRA
    • Roth IRA
    • Simple IRA
    • Annuities
    • 401k
    • Long Term Care
  • Group Insurance
    • Life
    • Health
    • Dental
    • Payroll Deduction Programs
    • 401k
    • Simple IRA
  • Financial Planning
    • Financial Needs Analysis
    • Life Insurance Planning
    • Retirement Planning
    • Long Term Care Planning