A home is a valuable investments that people make. It is your safe space where you can rest and even create great memories with your loved ones. Since owning a home does not come cheap, you have to protect it in the best way possible. That is where homeowners insurance comes in.
Based on the insurance information institute, only 90% of homeowners take this form of insurance. This means that millions of people who own homes are uninsured. Such people risk a significant financial loss in case of a natural disaster. When you decide to own a home, insuring it against such events should not be an option. Find out more about the importance of homeowners insurance.
It protects not only your house but also other property
Even if you choose to go for the most basic policy, it should be enough to protect your home against major hazards. Sometimes, things such as a fire breakout, hurricane and tornados occur, and this can leave you broke and homeless if you are not insured. Even if the damage to your home is adverse, your homeownersinsurance policy should be able to replace and repair your home. This can, therefore, help you save your money if such events occur.
If your home is destroyed to the extent that you have to move, your policy should also be able to pay for additional living expenses. It should help you pay for a temporary place to stay as your property undergoes the necessary repairs. Some of the policies even offer reimbursement cost of most of your personal belongings. This can save you from starting from scratch since you don’t have to replace furniture or electrical appliances with your money.
The policy can also protect your liability
Most of the insurance companies go beyond handling structural issues. If youare sued due to an injury that occurs on your property, your insurer can protect your liability. Such things are unexpected, and people without homeowners insurance end up paying a lot of money that they could have saved.
For instance, your dog may attack a stranger in your property. In this case, the law holds you responsible, and the injured person may file a lawsuit against you. When your homeowners insurance policy includes liability insurance, it can pay for any legal fees you incur or medical bills.
Your mortgage lender may ask for it
Before you qualify for a mortgage, most lenders require that you have homeowners insurance. Though this is not a state requirement, lenders want assurance that you protect the investment, if you are relying on a mortgage to attain the property. If you fail to buy insurance, the lender can buy the policy in your name and include the cost to your monthly payments. They may not try to find the best deal. You can, however, find yourself the right insurer instead of letting the mortgage lender get one on your behalf. Look for fast homeowners insurance quotes and try to compare different companies to find the most favorable one.