In 2017, 98.1% of homeowners insurance claims were a result of property damage.
Property damage is very common but can be difficult to fix if you don’t have enough money saved up.
Homeowners insurance can cover you in the case of fire, vandalism, severe weather, and more. Read on to learn about the reasons why you need homeowners insurance.
1. It’s Required
One of the most important reasons why you need homeowners insurance is that it is required. The state doesn’t require it, but most lenders do.
Just like car insurance or renter’s insurance, you normally need to prove that you have it to be able to finance your house.
Home insurance is required because it protects the lender’s investment. They know that if something happens like damage or loss, their money is still covered by the insurance.
The minimum amount of coverage that you need will most likely depend on how much your mortgage is. If you don’t end up buying homeowner’s insurance, your lender may purchase a policy for you and just charge you every month.
If you want to have some say in what type of insurance you have, get insurance here.
2. Protects Your Home
Another great reason to have insurance is that it will protect your home.
Having this insurance will mean that you are protected if something like wind damage, vandalism, tornadoes, hurricanes, flooding, thunderstorms, earthquakes, or fire damages your house.
If some part of it is destroyed, the insurance will step in and help pay for some of the replacements and repairs so you don’t have to spend all your money on something that wasn’t even your fault.
When you first purchase your insurance, you should check to see if there is a policy that will pay for damages on a replacement cost basis. This will make sure that you are financially protected as opposed to if it was a cash value basis.
A home is one of the most expensive investments that you could make, so you want to make sure you have as much coverage as possible.
3. Protects Your Liability
Another good reason to get homeowners insurance is that it will protect you from being liable if something happens on your property.
If someone decides to sue you for an injury that happened on your property, your insurance will protect you.
While you may not be responsible if someone slips and falls on an icy or wet sidewalk in front of your house, there are other things that could potentially be blamed on you.
For example, if a neighborhood kid sneaks into your backyard and gets into your pool and drowns, you can legally be held responsible.
4. Protects Your Personal Property
Not only will it protect your house from damages or theft, but it will also protect the property that you have inside of it.
The insurance may not cover all of the cost for the belongings in your home, but it will cover some of it, which can really help in an emergency.
Some policies will include coverage for electronics, furniture, clothes, art, collectibles, and even jewelry.
You shouldn’t just assume that all of these things are covered by your insurance; make sure that you read the policy and see what it actually covered. That way you’re not in for a surprise later on when something does happen.
Another great thing about this insurance is that it protects your valuables even if they’re not in your house. Whether it’s in your house, car, or a storage place, you could get reimbursed if something happens to it.
5. Will Pay Some Medical Bills
Remember how we said that you could be liable for injuries on your property?
Well, if an injury happens on your property, but the injured person doesn’t want to sue you, your insurance still may pay for their medical bills.
Again, you should read your policy and see if guest medical coverage is included in the policy. If it is, that will ensure that if anything happens, you and your guests will be protected.
If you have this in your policy, the insurance could pay for something like the ambulance ride to the hospital, surgery, or even a stay at the hospital.
6. Assistance After a Disaster
If a natural disaster ruins your house, you may not be able to live there. If you don’t have friends or family to stay with or money to get a hotel, don’t worry.
The insurance will cover the cost for you to stay somewhere while your house is repaired or you find a new one.
7. Protects Your Equity
If you don’t know, equity is how much value your property has, beyond mortgage and liabilities. When you make renovations or upgrades, the equity in your house increases.
If something happens to your house, homeowners insurance will ensure that you won’t have to start building your equity up again.
This is really important if you’ve put a lot of work and money into your home.
8. It’s Easy to Get
Some people may say they don’t want homeowners insurance because it’s too difficult to get, but this actually isn’t true.
It is one of the easiest insurances to sign up for. Just make sure that you read the policy and choose the right one for you.
9. You Won’t Have to Worry
While all the above reasons are great, one of the best may be that you won’t have to worry.
If you are struggling to pay your bills and mortgage, adding another bill to the list may sound like something you won’t want to do. However, it’s a small price to pay if something ends up happening in the future.
With homeowners insurance, having the peace of mind is worth it. You can go to sleep knowing that if something happens to your house or your belongings, you won’t have to go in even more debt to rebuild.
Think About the Reasons Why You Need Homeowners Insurance
These reasons why you need homeowners insurance are important to consider.
If you are thinking about buying a house, you should also factor in insurance to that cost because it would be a mistake not to have it.
What are you waiting for? Go sign up for homeowners insurance today!
