Whether you’re a new homeowner or you’ve already paid off your mortgage, you may have wondered if home insurance is worth the price. As one of your most valuable assets, your home needs to be protected against unexpected damages. Homeowners insurance can help provide financial relief after many types of incidents. If you’re on the fence about purchasing a homeowners policy, the following reasons can help you learn why it’s essential for your property.
1. Wide Range of Coverage
Besides natural disasters, many other accidents can occur and damage your home. Standard homeowners insurance typically covers over a dozen perils, including fire, hail, lightning, theft, power surges, and theft. Some events are rare, while others can happen at any time. When you avoid delaying coverage, you’ll be properly covered to manage any type of accident that comes your way.
2. Home Insurance Protects More Than Just Your House
A homeowners insurance policy protects the physical structure of your home but it may include additional valuable coverage types that preserve more than just your home. With even more protection against different types of accidents, these additional coverages help get the most out of your homeowners insurance. A standard homeowners insurance policy may include the following coverages:
· Dwelling coverage: In the event that a covered peril damages your house or any attached structures, such as a garage or deck, dwelling coverage helps pay for repairs.
· Other structures coverage: This type of coverage pays for repair or rebuild costs for detached structures on your property, like a shed or fence.
· Personal property coverage: If your personal belongings are destroyed by a covered peril, personal property coverage helps replace certain items, such as electronics or furniture.
· Personal liability coverage: If you or someone in your household is found legally responsible for accidentally injuring someone or damaging their property, liability coverage may help cover legal fees, medical bills, and repair costs.
· Medical payments coverage: If a guest is accidentally injured while in your home, your policy can help pay for their resulting medical expenses. As a result, homeowners insurance can help protect you against lawsuits.
· Additional living expenses coverage: In the event that you can not stay at your home after a fire or other covered claim, your homeowners policy may help pay for relocation costs, such as hotel bills.
3. Covers Expensive Repairs
Many expenses are involved when any disaster strikes your home, from replacing your belongings to temporary living costs. If an accident were to occur, it would be devastating to be left with no money to repair your property or replace your possessions. Rebuilding your home after a tornado or fire can cost hundreds of thousands of dollars. While you may usually like to conduct home repairs yourself, the last thing you’ll want to do after an accident is spend all your time and money trying to repair it. While home insurance can’t prevent your home from being damaged, it can help provide a significant financial safety net in the event of a disaster or accident.
4. Mortgage Lenders Often Require Insurance
While no law requires home insurance in any state, many mortgage lenders will require that your home be insured for a certain amount. This is to ensure that they have an investment in a property that is fully covered against damages. In most cases, homeowners must provide proof of coverage before closing on a mortgage. Although it may be a requirement, you'll find that purchasing a policy for your new home brings a wide range of benefits.
From fires to robberies, homeowners insurance helps cover you, your family, and your property from a variety of accidents. Home insurance gives you peace of mind knowing your home is protected daily.