When you buy a home, you are making one of the biggest financial decisions of your life. The best part of being able to own a home is being able to insure it in case anything should happen to it. However, many people may think that insuring their home is the money going down the drain, but what people don’t realize is that all financial institutions that grant mortgages require a home to have insurance prior to loan closing.
Why Insuring Your Home is Important
Knowing and understanding the importance of insuring your home will allow you to show appreciation towards your home. It also shows that you really care about the investment that you made in obtaining it.
What must be known, though, is the fact that having a homeowner’s insurance policy is not truly appreciated until one is obtained and at the time it needs to be executed. This appreciation can be seen in areas where disasters are known to occur like the Gulf States (hurricanes), or “tornado alley.”
Having your home insured will provide protection against any damage that is caused by an unforeseen disaster. This protection provides peace of mind knowing that you won’t have to put any of your own money into repairs if anything does occur that is out of your control.
As you take out a homeowner’s insurance policy, make sure to go over what is covered and what is not, based on the area where you live. You want to make sure that it covers the important things, if not everything.
Plus, you will love the fact that having an insurance policy is not as expensive as you may think. You need to keep in mind that the type of home that you have will also determine the type of homeowner’s insurance that an insurer will provide.
Once it is all said and done, you will love the fact that your stress level has decreased substantially, knowing that you are well protected.
With that, here are seven good reasons why one must consider home insurance.
- Your Home is Protected in case of any Unforeseen Catastrophe
You need to realize that disasters happen that are out of your control, and nature is known to cause a lot of them. This is what a homeowner’s insurance policy will cover you against. We never know when and if a catastrophe will occur, but it is a smart idea to be ready just in case. You don’t want to be the one that “should’ve, could’ve, but didn’t,” do you? I didn’t think so either.
- You Are Protected Beyond Your Home
Having a home insurance policy goes beyond the home itself. Most policies are able to cover other property structures such as your property’s fence, deck, sheds, and garages.
Make sure to ask your insurance agent about what can be added on top of the normal coverage so that you know if the belongings inside the home can be covered or not, such as furniture or appliances.
- Any Loss is Fully Covered
When you have your home insured, any loss that occurs will be fully covered as long as you list the items to be covered. This is great because if anything needs to be replaced, then the items themselves will be replaced instead of waiting for a check for the item’s value, which can be a long waiting period depending on the number of items.
- It is Required for Mortgages
If you are looking to purchase a home through any home loan program, then you will be required to have homeowner’s insurance prior to making a purchase. This requirement is across the board, and no matter which financial institution you apply at, they will tell you the same. The reason is understandable: security. The financial institution needs to feel secure before lending thousands of dollars because it is their investment too.
- It is not as pricey as you may think
A lot of times, a homeowner’s insurance policy may be seen as an unnecessary burden, but from a financial standpoint, it is not that much of a drawback. Some insurance policies could even be lower that an auto policy when you compare the yearly amount. Sure, risk has a lot to do with it, but in the long run, not much money is flying out of your pocket to take notice.
- Provides Legal Protection
A homeowner’s insurance policy is able to protect you from any legal claims made against you. Example claims include another property owner claiming that you caused damage or personal injury that took place on your property. These will all be covered under the policy if a judgement is placed against you by a court.
When you have your home protected with insurance, you get the reassurance that everything will be ok. Regardless of the type of home that you live in, your policy will allow you to sleep at night knowing that your belongings are being protected and that paying for any loss will not make you responsible for those losses.
As you can see, having a homeowner’s insurance policy is a great thing to have. Not only is it required, but you will have great reassurance knowing that you will always be protected. Having insurance is never a burden when it comes to an investment that you care about.