Nobody likes paying for any insurance. Sometimes there seems to be zero likelihood of any incident even after years of dishing out insurance premiums. While the saying “you never know…” keeps losing meaning, there are some insurance policies you can’t bypass.
If you’re thinking about skipping out on home insurance, then you should reconsider your decision. Home insurance is very important for anyone who cares about his family and property.
Plenty of homeowners ask why is it important to have insurance? In this piece, we’ll highlight why having home insurance isn’t much of an option but something mandatory.
What Are the Types of Home Insurances?
When it comes to home insurance, you have plenty of options to choose from. Here are a few common types of home insurance you should put into consideration.
Dwelling coverage– This is the most basic type of home insurance which caters to the entire housing structure. The insurance covers everything from your walls, the floors, the roof and ceiling
It also covers any structures attached to the house itself, such as fires, hail, and even serious burglaries and vandalism.
Personal liability– This covers any injuries sustained by guests inside your house. It also takes care of any external damage to the house. These policies only cover damage if it was as a result of an accident covered by the insurance in question.
Contents coverage– Contents coverage takes care of any items within your house. It includes furniture and clothing, among other items. In case of any incident, you receive funds covering the value of the items lost in the incident.
Optional Home Insurance Coverage
These aren’t your conventional home insurance policies. They are more of special case insurance policies depending on the buyer’s current situation. Optional home insurance coverage includes:
Earthquake insurance– Covers any damage in the event of an earthquake
Flood insurance– Applicable in flood-prone areas to cover any flood damages to your house.
Other structure insurance– This insurance covers structure not attached to your home. These structures include gazebos or a separate home garage.
Why Is it Important to Have Insurance?
When you get home insurance, you’re not only protecting your home but yourself and family too. A good home is a basic necessity as you can lose your entire house without warning of a disaster. Home insurance ensures you have something to go back to in case of any mishaps.
Here are seven good reasons why you need home insurance:-
1. Peace of Mind
You can’t put a price on peace of mind. Let work and school bother you, but your home is something that you shouldn’t have to worry about.
You can’t live holding your breath every time that nothing ever happens to your home. So when insurance seems like an unnecessary expense, remember you can lose your home in a flash. With home insurance, you can rest easy knowing the insurance has got you in case of anything.
2. Thefts Are Covered Too
People have lost thousands of dollars to house burglaries and break-ins. On average, a burglary takes place every 23 seconds in the United States. When your home’s security system just won’t stop it, your home insurance is your best bet for protection from losses.
What’s great about home insurance is that it just doesn’t cover for the stolen items. In case of any damage to doors, windows, or structures, home insurance will sort you out. Despite all this, it doesn’t mean you should slack on home security because you have home insurance.
3. You Don’t Lose Much from Natural Disasters
Natural disasters are the worst because they strike unexpectedly. Fortunately, with home insurance, you’re prepared for the worst in case of anything. Apart from injuries, you won’t suffer any financial woes when rebuilding your lives after a natural disaster.
4. May Be a Requirement for Mortgage Lenders
You might need home insurance before entering a mortgage agreement. A mortgage is among the best options for your home financing. In fact, a majority of Americans opt for mortgages to finance their homes.
Many mortgage lenders, including banks, will require proof of home insurance. In doing so, the lenders protect their assets. Home insurance protects these lenders from liability in case of any incident.
5. To Protect Third-Parties
A guest may be the victim of a house accident and may decide to sue for compensation and damages. A public liability insurance plan protects you from incurring any costs when such a thing happens.
So if you want to remain on good terms with your guests, always consider getting home insurance. Without home insurance, you’ll have to pay for any structural repairs plus the medical expenses of the injured guest as damages.
All in all, it makes much more sense to pay a premium. It’s either this insurance or digging deep into your pockets in case of guests’ injuries in your house.
6. To Help you Temporarily Relocate
Some disasters are so immense that you can’t go back to your home for a while. When that’s the case, you’ll need to relocate temporarily as you await reconstruction.
Proper insurance will help you relocate your entire family and property seamlessly. Insurance providers will help you move your stuff and find a suitable place for your entire family.
7. Protects Equity
For most people, homes are their most valuable asset. The equity in your home is very valuable and you shouldn’t risk losing it.
Equity is the price value of an asset, useful when you want loans or for resale purposes. Insurance protects your home from losing its equity in case of any disaster.
Get Your Home Insurance ASAP
Next time you think, why is it important to have insurance? Take a look at this article and refresh your mind. Home insurance can save you a lot and can be your only solace when it all falls down
Contact us today and we’ll see how to get a home insurance plan that works for you.