Homeowners’ insurance is not a luxury but a must-have in our current uncertain society. Although not required by law, this policy protects your home and belongings while providing greater peace of mind. Don’t think of homeowners insurance as another unwanted expense in your budget; think of it as a smart investment to save your future self from a horrible fate. Here are seven reasons why it can help.
Homeowners’ insurance will not make your home immune to damage or theft. However, the insurer pays for any damage or loss if it occurs. This saves you money since you won’t pay for repairs or replace belongings out of your pocket.
In most cases, rebuilding or repairing a home after damage or replacing stolen items can be costly and affect your finances adversely. For instance, insurance providers pay approximately $6,965 for a water damage claim culminating in $2.5 billion for water damage and related losses.
Homeowners’ insurance has liability coverage to protect against lawsuits. Should your dog bite a passerby, or should someone slip and fall on your property, the insurance provider caters for the medical bills and other resulting expenses. Nonetheless, most homeowners insurance covers have liability coverage of $100,000, though you can purchase more coverage.
Although the laws in most states don’t require homeowners to acquire insurance, banks and mortgage lenders do. The insurance safeguards the lender’s investment if the house is damaged. In case you don’t have a homeowners insurance policy, the lender can purchase one and charge you for it.
Nowadays, natural disasters are rampant and cause substantial damage to homes and adjoining structures. A storm can lead to sewer backup in the basement, destroying valuables and causing electric malfunctions. While sewer backups only account for a negligible number of basement water problems, they are increasing at a worrying rate of 3% every year.
Home insurance offers protection should a storm, tornado, or hurricane wreak havoc on your home. It’ll pay for all required repairs and damaged belongings. However, it’s best practice to enquire from your insurer about the natural disasters covered in your policy. Most policies don’t cover earthquakes and floods.
If an insured peril damages your home making it uninhabitable, homeowners insurance offers loss of use coverage. The insurance provider caters for expenses incurred when seeking shelter elsewhere, such as hotels, food, and rent until your home is habitable again.
One of homeowners insurance’s most significant benefits is offering you and your family greater peace of mind. Few things are more frustrating than leaving with the fear of the unknown. What if a tree falls on your home and destroys the roof, attic, and part of the living room? Where do you get the finances for all the repairs? Insurance gives you the confidence to live your life without worrying about unforeseen events like tornados and theft.
Homeowners often take precautions to protect their homes from perils like fire and theft. However, these mechanisms minimize the risk. They don’t eradicate the threat. For instance, fire sprinklers reduce the risk of fire deaths by 60%, but they don’t make your home resistant to fires. Homeowners insurance is handy since it protects from loss if an insured peril strikes. It replaces damaged property and belongings such as furniture, clothing, appliances, and personal effects.
Acquiring homeowners insurance is a smart way to protect your home, belongings, and family. The insurer compensates for damage to your home’s interior and exterior, loss of use, theft of personal belongings, and lawsuits related to your property. In a nutshell, the benefits of homeowners insurance outweigh the premiums paid.