Why you need home insurance
Reasons Why You Need Home Insurance
Insurance is a contract that protects you. You make payments to a company that agrees to cover or reimburse you for any damages or losses. Basically, insurance gives you security in those “what if” moments. We all wonder about the things that can go wrong. What if a storm comes in and causes major damage to your house? Most people do not have savings for such occasions. In fact, a lot of homeowners have already invested their life savings in buying the house.
Why Home Insurance?
So, what do you do when faced with the more unfortunate moments in life? Without insurance, a bad event can be made even worse. On top of responsible planning, homeowners insurance brings security and peace of mind. You can rest soundly, knowing that if the roof over your head caves in, you will be able to repair it.
Unlike auto insurance, homeowners insurance is not a state requirement. However, insuring your home is often required by your mortgage lender. After all, it’s their investment as much as it is yours. If something happens to the property, they stand to lose a great deal. So, they want to make sure that their investment has security. For the homeowner, this is also a smart move. You have already taken out an expensive loan on your home. If anything happens to the property, you will be responsible not only for the amount of your loan, but also the cost of any damages.
What Does Homeowners Insurance Cover?
In addition, having homeowners insurance also protects you in various different situations that might arise. Storms and extreme weather can cause a great deal of damage to a home’s structure. Wind and hail, earthquakes, fire, and floods all have the potential to devastate homes. Dealing with the aftermath of a storm can be hard enough without the extensive, costly repairs. You might have to wait and save up or opt for a cheaper quick fix that leaves your home structurally vulnerable. There is not a lot of security in this. Even after you make repairs, there is always the chance that another storm could happen right after. This would put you back in the same dire position. Is that a chance you want to take?
In the event that the damage is severe enough that the home is not livable, insurance can also cover temporary arrangements. You and your family might need housing while construction is being done. And the coverage isn’t just lodging; it could also cover food, laundry and dry cleaning, storage space, and internet/cable connection.
Protecting Your Liability
Another concern in owning a home is the possibility of someone being injured on your property. There are so many situations in which this could occur which you cannot predict. For example, you might know that someone is even on your property. Often, people don’t worry about this because they have maintained their property well, but is important to note that it might not be your fault. For example, you could be sued from something as simple as someone delivering a package and slippy in your icy driveway. The liability protection will cover any legal and medical fees, as well as, any lost wages for the injured party.
There are many reasons why you need homeowners insurance. Security is worth the monthly cost of insurance payments. Be smart and proactive to protect your home.