Owning a home comes with a lot of responsibility. For all the benefits of home ownership, there are also certain risks you take on. The responsible thing to do to mitigate this risk is to invest in a homeowner's insurance policy.
A house is one of the biggest investments you'll make in your lifetime. As such, it would be a major mistake not to protect that investment. Protecting your home can help you to rest easier at night, knowing that you're safe in case of an emergency.
Read on and we'll walk you through why you should have homeowners insurance.
Home Insurance Protects You From Loss
Damage to a home can be quite expensive. So expensive that it can actually be debilitating.
Homeowners insurance can protect you against these huge costs. Insurance will safeguard your home from storms, fires, and other natural disasters which could affect your property.
Insurance can protect you from loss regardless of the severity of the damage. Whether your house has been barely dinged or totally demolished, homeowners insurance will ensure that you are covered against loss. It can cover repairs including tasks as complicated as roof replacement.
Homeowners insurance can help protect you against more than just damages to your home. It can also help to cover damages to your own personal belongings. Insurance can cover all sorts of items, including furniture, electronics, appliances, and so forth.
If your stuff is stolen or damaged in any sort of disaster, your homeowner's insurance policy can help pay for the cost of replacement. You can relax knowing that you'll never be stuck trying to recover from the huge cost of such replacements.
Many Mortage Lenders Require Insurance
Unlike auto insurance, there is no state requirement that requires homeowners to have insurance. That being said, many mortgage lenders will require you to have insurance if you plan to finance a home.
Mortgage lenders do this because it protects their investment. They do want to experience losses due to damage any more than you do. You will likely need to have coverage in place that matches the amount of your mortgage.
Even if you fail to get an insurance policy, your mortgage lender will likely get one for you and add it to your monthly payments. No financiers will want to see a house go uninsured.
Insurance Also Protects Your Liability
Not only does insurance protect you from damage, but it also protects you and your family from liability. If someone were to be injured on your property, your homeowner's insurance can cover you in the event of a lawsuit.
Liability on coverage for most policies even extends away from the home. Accidents that happen on the neighborhood golf course, for example, can be covered under the same policy. That means you don't have to be as worried about accidents in and around your house.
Why You Should Have Homeowners Insurance
There are many reasons why you should have homeowners insurance, with the above reasons being just a few of them. Need more help understanding insurance? Check out the insurance and real estate sections of our blog for more information.
