page 356 of SWHH PDF

By now, you probably won’t be surprised to know that I keep a list entitled Tara’s Collection of Helpful Life Proverbs. I want to share two with you.
No. 17 – From my hygienist, on dental health: You only have to floss the teeth you want to keep.
No. 33 – From my Abnormal Psychology professor, on mental health: Just because you’re paranoid doesn’t mean someone’s not out to get you.
So how do these relate to homebuying?
Like your teeth, your new home is an asset you must protect. If you want to keep it, that is. The majority of American homeowners think their homeowner’s insurance policy is all the protection they need. That’s because they are blissfully unaware of how paranoid they should be—there are about six different dangers and pitfalls lurking out there in the world that are “out to get” your new asset. The good news is that you can protect your new home from most of these dangers fairly simply and inexpensively relative to what you have to lose if you do nothing. The biggest cost to you is a modicum of effort and energy, so scrounge up a little, and go this final mile to make sure your hard work in getting your home doesn’t go down the drain.

Misused Equity

Divorce

Unexpected Interruptions in Income

Capital Gains Tax

Death

Disability