It’s likely that you put a significant amount of money into your home when you bought it. Now, what if your home were to get damaged or destroyed due to an unforeseen circumstance? Would you be able to re-invest the money all over again into rebuilding or repairing your home? You most likely wouldn’t be able to and that’s why you should buy home insurance. Here are some reasons why you should consider buying a homeowners insurance policy.
Deemed as Necessary by Mortgage Lenders
If you are buying your home on a mortgage, keep in mind that most mortgage lenders will require you to have homeowners insurance. You are unlikely to get your loan approved unless you provide proof of insurance.
Protection Against Natural Calamities
Natural calamities can easily damage your home and property. Having homeowners insurance ensures that you are financially protected in case such disasters were to cause damages to your home. That said, keep in mind that standard homeowners insurance policies do not cover damages caused due to floods and earthquakes. If you live in a region where either of these disasters is common, consider getting additional insurance.
Protection from Manmade Risks
Man-made risks like vandalism and theft are a point of concern for homeowners. A homeowners insurance policy ensures that your home and possessions are protected against these risks. In case you would like additional coverage for high-value possessions, you can purchase a rider along with your insurance policy.
Covers Liability
Did you know that homeowners insurance also protects you if a third-party injures themselves within your property? Your policy will pay for their medical expenses, so you don’t have to go through any financial hassles.
Covers Relocation Costs
If your home is uninhabitable due to a covered loss, your policy will cover your temporary living costs, helping you save money that you would have otherwise had to spend on your living expenses.
If you own a home, buying home insurance is the smart thing to do. Make sure to compare policies offered by different home insurance companies and pick a policy that has a competitive price. It’s also important to familiarize yourself with the terms and conditions of the policy before buying it.
