Your home is your safe place. This is where you get to relax, spend time with family and your loved ones as you make lifetime memories.
It also happens to be your most significant investment. As such, it is only best that you do whatever you can to protect it, and investing in homeowner insurance is the best way to go about it.
Some homeowners view this as an unnecessary expense that they would rather avoid, but that is only because they have not realized its value.
You should learn more about home insurance, what it is, and how it works so, you can understand its importance and why you need it.
What is Home Insurance?
Home insurance is a type of property insurance that has been designed to protect or cover your home from a range of dangers such as theft, fire, peril damages, and accidents, to mention a few.
It is more like a contract where you agree with the insurer that if things go wrong, they will help you cater for the losses.
However, to enjoy the benefits that come with home insurance, you should take your time and search for a reputable insurance company that will meet your needs.
You should also let professional brokers come in and help you in your search. The brokers understand home insurance better than you do; they are familiar with the insurance market and will, therefore, get you the best insurer.
If you are still skeptical about investing in home insurance, here are the top benefits and reasons why you should do it.
Benefits of Home Insurance
1. It helps you protect your property
The primary purpose of a home insurance coverage is to safeguard your home against potential risks and hazards such as theft, vandalism, fire, and other natural tragedies such as hurricanes, hail, and tornadoes.
The best part about having insurance coverage is that the policy will cater for the repair and replacement of the damages caused regardless of the extent of the destruction.
You no longer have to spend your pocket money on such unplanned circumstances. Sometimes regardless of the measures you put into protecting your home, things might go wrong when you least expect them to and even leave you without shelter.
Having insurance coverage gives you peace of mind knowing that you are safe regardless of what comes your way.
2. It’s a requirement by most lenders
While home insurance is not a requirement by the state, most lenders will demand you to show proof of insurance before you qualify for a loan or mortgage.
This is because the insurance coverage protects your property from unexpected damages, and therefore if you intend on using your home as loan security, having coverage will add up to your qualification.
Also, if you do not have a home insurance policy, the lender might require you to pay an extra monthly fee for protection.
3. Liability protection
A lot could go wrong, and it could go to the extent where you are sued, and you find yourself in the law court. This is where home insurance comes in to protect from liability or whichever reason for being sued.
Take an example of a situation where a visitor is injured due to an uncovered pothole in your company or slips and falls due to your negligence.
You will be required to cater for their medical bills and other losses suffered due to the accident. The liability policy will provide for all the expenses, including medical bills, lost wages, and legal fees.
What’s more? It will help you in preserving your home’s equity and increasing the home value.
4. Protect the valuables in your home
It is not all about protecting your house, but also, having home insurance protects everything in it.
This includes your expensive jewelry, equipment, and those musical instruments that you value more than anything else.
In case of fire, you will not only be compensated for the burnt building but also any other valuable that was included in the insurance policy.
5. Temporary living expenses
For example, your home could become inhabitable due to floods or any other aspect that could force you to move out until it is renovated. This means that you have to go live in a hotel until space becomes habitable.
The insurance coverage will cater for all the expenses and bills until you get back to your home.
While you cannot predict what will happen to your home, having a home insurance coverage will give you peace of mind knowing that you are protected against whatever comes your way.
Although things might not get back to how they were before the damage, the coverage will help you get back on your feet.
Stock Photo from Puttachat Kumkrong @ Shutterstock