Homeowners

8 Reasons You Need Home Insurance

You have done a great job of building your home and congratulations on that. But have you ever asked yourself what would happen if the worst strikes your property? Are you in a position to protect your home without disrupting your normal living routine? Or without poking holes into your financial wallet?

Natural disasters, theft, fire outbreaks or unforeseen events can wreak havoc on your property and finances. This usually happens and most homeowners are caught off guard. This is where home insurance comes in to cover your investments in case of an unexpected turn of things and give you peace of mind. If you want to know more about why home insurance is a must-have for your home security, this article is for you.

1. Financial Protection

Life is full of unexpected events. Some are welcome and others not so much. Disasters such as fire, fallen trees or even an explosion from riskier items like gas cylinders can cause significant damage to your home. However, having a home insurance in place helps cover the repair or replacement costs which may otherwise be a catastrophe to your finances.

2. Shields You from Liability Lawsuits

We all love friends or guest visits from our loved ones. But the visitation can turn disastrous. A guest can injure themselves on your property or get injured unintentionally which can lead to legal battles in case they decide to file a case. Home insurance provides liability coverage (that includes legal fees and any settlements awarded to the injured party) and helps protect your assets from being drained from such situations.

3. Safeguarding Your Items from Theft and Vandalism

Theft and vandalism are obvious and they can happen to anyone particularly homeowners. During these events, a lot can occur from loss to damage of belongings. But home insurance typically covers the havoc or loss that may happen in the aftermath of these activities, including items like furniture, electronics, jewelry, and clothing, up to a certain limit specified in your policy.

4. Provides Temporary Home When Disaster Strikes

It is unimaginable to wake up one day without a home. But this is not far from reality since a fire, flood or any other disaster can render you homeless. In case of these events, where will you seek refuge? This is why home insurance is important. It covers the cost of temporary housing while your home is repaired or rebuilt, which allows you and your family to continue with your daily routine during that stressful moment.

5. Covers Additional Living Expenses

Unexpected events can disrupt our normalcy. That means eating from out, laundry services, pet boarding or other expenses that individuals may incur during these situations. Apart from temporary shelter, home insurance might also cover these extra living expenses since your normal routine is interrupted.

6. Pays Medical Bills

As we mentioned earlier in the article, we all love visitors. But during the visitation, visitors can get injured and they don’t want to take a lawsuit path. Most home insurance policies include guest medical coverage which means the policy will pay for the medical bills of anyone injured which is sometimes not covered by the general liability section of the policy. In such events, an insurance company can pay for ambulance services, X-rays, surgery and an individual hospital stay.

7. Helps You Secure a Mortgage

Though this is not a requirement in many states, most banks, mortgage, or lenders insist you must have home insurance to access a loan. This is crucial to them since they know their investment is protected in case of house damage or loss. Otherwise, if you don’t have home insurance, lenders or mortgage companies will provide you with a forced coverage policy which allows them to recover their investment in the course of a disaster. However, this policy will not cover you or your loved ones but only protects the interests of the lender. So, it’s ideal if you buy homeowner’s insurance yourself as that’s the only way to cover your family in case of unexpected circumstances.

8. Provide Peace of Mind

Nothing feels better than living in your home knowing that someone has your back in case of a twist of events. You just know in case of fire, hurricanes, property damage, or theft, home insurance will come to your rescue. This sounds good, right? During catastrophic events, an insurance company will help in covering the loss, damage, medical bills and even finding you and your family a place to stay (a hotel maybe) while they repair your home. However, this is not a favor they’re doing you but it’s your money.

Does Home Insurance Cover Everything?

No. Some natural disasters like earthquakes require special insurance policies. Also, some home insurance policies don’t cover flooding catastrophes. Homeowners are required to purchase a separate flood coverage policy from the (federal government’s national flood insurance program).

How much is Home Insurance?

There is no one-size-fits-all answer to this since it depends on various factors such as the state you live in, the property you’re insuring and the package policy you choose. Moreover, expect to pay from $1000 or more per year.

Factors to Consider when Choosing a Home Insurance Policy

Home insurance policies are not the same. Therefore, it’s important to understand what is covered and not covered in the policy, monthly payments and any other requirements. Also, remember some homeowner’s policies will not cover your home against natural disasters such as floods or earthquakes. You have to purchase them separately.

Conclusion

There you have it. These 8 reasons to have home insurance are essential to help you see why you need it. It will cover you from unexpected events that may occur unwelcomed and safeguard your finances, giving you a stress-free life. However, keep in mind that different insurance companies offer different coverage options. So, it’s of great importance to consider these facets when selecting an insurance provider to avoid last-minute frustrations when things get worse. Understand what is included and excluded in the policy and choose a policy that best suits your specific needs and budget.