Your home is your castle. And whether it’s brand-new or 100 years old, your house is likely your biggest investment. So, it makes sense to protect that treasured investment with a comprehensive insurance policy. While insuring your home is not required by law, there are a few compelling reasons why you should have a home insurance policy.
1. If you’ve financed your home, the lender requires it.
It’s true that the law doesn’t mandate that homeowners carry insurance, but if you are financing your house, the mortgage company will insist that the property they’ve financed be insured. In most states, lenders are allowed to purchase a policy if you don’t have one and tack the premiums on to your monthly payment. By obtaining your own insurance, you’ll save money and get the coverage that’s best for your needs. Don’t pay the bank more money than absolutely necessary.
2. Your home is a major investment, and insuring it protects you financially.
Insurance isn’t always a popular product, but it is an effective one. If your property is damaged due to a natural disaster, fire, vandalism, burglary, etc., the cost of repairs can climb into the tens of thousands of dollars. Homeowners insurance covers not only your primary residence, it insures other structures like sheds and garages (attached or detached). It’s simple math, really: Just one insurance claim payout can easily total more than you’ve paid in premiums, so no matter what happens, you’re protected.
3. Insurance covers more than just physical structures.
More than the walls and roof and floors, homeowners policies insure your precious belongings. Electronics, tools, computers, jewelry, clothing, appliances, etc., are included in your coverage. Depending on your specific endorsements/riders, your belongings may be covered—even when they’re located outside of your home (golf clubs in your car, for example). If a visitor is injured on your property, your policy protects you. And in the event your home isn’t habitable, temporary living expenses while it’s being repaired are also covered by most policies.
4. Insurance gives you strong piece of mind.
The best possible outcome of having insurance, paradoxically, is never having to use it. No matter how cautious you are as a homeowner, however, things happen. Perhaps a clumsy delivery driver slips on your stairs and injures himself. Maybe a negligent utility company doesn’t maintain power lines and a fire breaks out like the 2017 fires in Northern California that decimated entire neighborhoods. Even high-net-worth people can face financial hardship if not properly protected against loss.
As you can see, homeowners insurance is an affordable, convenient way to protect yourself, your home, and your family. If you’re taking out a mortgage, you’ll have to have insurance at or before closing. But don’t just go with the first company your bank refers you to. Be sure to shop around for coverage that not only fits your needs but is from an insurance company that’s reliable and that has a strong reputation. It’s also important to take an inventory of your personal belongings—as Hippo Insurance found most Americans don’t have the right type of insurance or don’t have enough coverage—and the last thing you want is to find out after you’ve made a claim that you’re under-insured.
The post Why Have Homeowners Insurance? Here Are Four Good Reasons appeared first on Movoto Blog.
