Any homeowner has heard this age-old piece of information many times: ‘Your home is one of the most significant financial investments that you will make over the course of your lifetime.’ But, like most investments, owning a home comes with associated risks. As a physical asset, your home is important not only because it provides your family with a place to live, but also for its financial value. Protecting it in case of loss, such as that incurred from brutal storms, vandalism, or even liability from injuries within the home, is a necessary and important step for every homeowner to take. Many insurance companies offer multiple kinds of insurance, so in some cases health insurance companies can even offer you your home insurance. Following are our top 6 reasons why homeowners insurance is worth it.
1. Protection from Loss
When you call an insurance company to receive a homeowners insurance quote, you are probably thinking of the damage that could happen to your property. Home insurance protects your home’s value in case of unfortunate, unforeseen damage. This damage could happen in a variety of ways, and commonly includes scenarios such as fire, vandalism, tornadoes, hurricanes, thunderstorms, and earthquakes. It does not matter whether your entire property is leveled, or a small portion is partially damaged – homeowners insurance will take care of it. Any necessary repairs or replacements will be handled by the insurance company.
2. Homeowners Insurance is Required in Many Cases
While homeowners insurance is not usually required by local law, such as is the case with car insurance in many states, it might be a requirement of your mortgage lender. In the case that you are among the millions of other Americans financing their homes, it is likely that your mortgage lender will list purchasing homeowners insurance as a requirement of their loan. Since your lender is also investing in the property you are buying, they want to make sure that the asset is safeguarded. If your lender does require insurance and you fail to purchase it, they may add a policy of their choice in your name anyways and add the cost to your mortgage.
3. Personal Belonging Coverage
One of the most overlooked benefits of homeowners insurance is that it not only covers your home, it also tends to cover the items inside of it. In the case that items are stolen from your home or destroyed in a disaster, your home insurance policy might reimburse you for your lost items. These could include furniture, electronics, appliances, clothing, and much more. Furthermore, homeowners policies usually cover your belongings no matter where they are, so if your phone is stolen out of your car while you are at the grocery store, your policy can often cover it. How awesome is that?
4. Liability Protection
Liability protection is an important aspect of homeowners insurance that is often overlooked. In the event of a lawsuit resulting from injury on your property, you might think that health insurance companies would be responsible for medical costs and losses. Unfortunately, however, liability can fall on the homeowner. Without proper liability insurance associated with your homeowners insurance policy, you could be financially responsible.
5. Temporary Housing Following Disaster
In the unfortunate case of a disaster that results in significant damage to your home, you and your family may need housing while it is being repaired or rebuilt. Fortunately, homeowners insurance covers the costs associated with finding temporary housing after a covered disaster. Depending on the time period of the repairs, this could include hotel costs or interim housing. Additionally, costs like food, laundry, and storage space could all be covered by your homeowners insurance.
6. Peace of Mind
All these benefits of homeowners insurance combine to offer its greatest benefit: peace of mind. Just as health insurance companies offer their customers peace of mind in case of an injury or illness, homeowners policies do the same for their insured. Plus, many health insurance companies also offer homeowners insurance, so that peace of mind might come from just one insurer!