A house is the most significant investment most of us make in our lives. We put heart, money, and love into creating a safe haven for our families, which is why we need to protect it. Homeowners insurance lets you have peace of mind regarding your home, as you’ll know it’s safeguarded. If you are a bit hesitant to make this investment, it’s our time to convince you. Here are ten reasons why you need to get homeowners insurance today.
1. Home Insurance Covers More Than Just Your House
The average home insurance policy covers not just the house’s exterior but most of the objects inside your home. Depending on your coverage, this can include possessions like furniture, appliances, and even clothes! The items do not necessarily have to be present in the house either. Any item stored in a storage facility or another person is considered insured.
Home insurance policies can even protect you from any damage incurred during a break-in, including items that have gone missing. Such insurance policies become even more important if you store valuables in the house. Insurance companies either give you total cash back or fund the cost of replacing the lost items. Do remember that you may need extra coverage to include certain possessions in your insurance.
Keeping stock on the prices of all the valuables in your house is especially useful in emergencies like this. Original receipts or pictures will hasten the process of filing the claim. When looking for a company or policy that fits, check the list of all things covered.
2. Helps in Getting a Mortgage
A client’s home insurance means the bank’s loan is protected in case of any damages. And when the client does not have home insurance, mortgage companies may try to include forced coverage into a deal – a mortgaged property enforced by the bank when the client does not have insurance or falls through. This kind of insurance focuses primarily on the interests of the bank or mortgage servicer. This is why getting your own home insurance is recommended to protect your best interests. It will also make you appear a better candidate for loans.
3. Legal Protection
Home insurance also protects you from potential lawsuits. If anyone is injured or harmed on your property and decides to sue you, your insurance will back you up and pay for the costs. There have been multiple cases where someone slips on a rock or gets bitten by a dog and decides to take legal action against the homeowner for harm or negligence.
Homeowner insurance policies also include guest medical coverage. If someone is harmed on your property, the insurance company will pay their medical bill rather than letting it go to court. Generally, they pay for anyone injured on the insured property that is not insured under the general liability of the contract. This mainly includes surgeries, overnight hospital stays, ambulance rides, and blood tests. However, the insurance companies only pay a certain amount, ranging from $1,000 to $5,000. You will have to pay out of pocket if the amount exceeds your policy’s limit. If you are looking for something to cover such expenses, then perhaps explore personal liability insurance policies.
4. Cushion the Damages Inflicted by Disasters
With volatile weather conditions these past years, incidents have increased and will continue to become more frequent. Specifically, if you live in a mountainous area or near the beach, it’s even more essential to safeguard yourself from such tragedies economically.
Any time a natural disaster strikes, damages are bound to be left behind. Windstorms, earthquakes, and tornadoes can leave your house a complete wreck—the repairs required after insurance companies take on these catastrophes. After the disaster has struck, insurance officers are sent to observe and record the extent of damages. There have been instances where deadly disasters like Hurricane Katrina have completely obliterated houses, leaving owners with physically no assets remaining. In such cases, homeowner insurance will even pay for the recovery of entire homes.
Earthquakes or floods are not included in the standard premiums, and you’ll have to put in your policy on demand. These are extensions of the policy that require extra payment. You can purchase a federal-controlled flood insurance policy through multiple agents in the United States. This is called the National Flood Insurance Program (NFIP) and is looked over by the Federal Emergency Management Agency (FEMA). It covers homeowners, renters, and even businesses. To be able to purchase this, you have to be a part of the 23,000 communities participating in NFIP.
5. Includes Relocation Expenses
If your house is entirely uninhabitable in times of catastrophe, you will have to move out to a temporary place or live in a hotel. Doing this continuously for a few weeks or months becomes highly expensive. With all the other costs incurred, this could completely deplete you financially. Home-insurance policies cover relocation costs, placing you in a hotel, or whatever is appropriate given the situation. They also pay for hotel rent, meals, hotel transportation, and other essential living costs.
Most insurance policies pay for 20% to 30% of your policy’s coverage for your loss of use expenses. For example, if your house is insured for $300,000, your insurance company will pay you somewhere between $60,000 and $90,000.
6. Secures Your Ownership
Buying a home is a substantial investment. Whether you can afford to buy it on your own fully or borrow from a bank to purchase it, it will be one of the most important assets you own. Insurance for your home will help secure your equity of the house. Equity, in this case, is the value of your property and any related liabilities. If something happens to your home, having it insured will ensure its value does not fall. It also helps to somewhat protect your property value from inflation or deflation. Even if the market price of your house falls, the new buyer will have to pay the price according to a decline in percentage from when the policy was created to when the house will sell.
There are a plethora of companies that offer homeowners insurance that can cater to your exact needs. Be sure to explore all the options, thoroughly examine the contracts to see what suits you the most, and get homeowners insurance quotes to compare costs. Don’t waste any time and begin the process to safeguard your house as soon as possible.