In your lifetime, one of the the largest investments you will make is your home. As an investment, it will be vulnerable to a lot of risks such as vandalism and brutal storms. With an insurance in place, you will be able to safeguard not only your home, but your family as well as from financial risk.
Below are some of the reasons why you need home insurance other than for piece of mind. Check them out and see if you might want to get one and be on the safer side.
1. Your mortgage lender requires your homeowner’s insurance
If you are financing your house, you usually are required to have homeowners insurance in order to protect your lender’s investment from damage or loss caused by risks that are covered.
Your mortgage amount will dictate the minimum amount you require for your homeowner’s insurance coverage. Failure to adequately insure your abode will likely lead to your lender purchasing a homeowners policy and adding the payments to your mortgage tab on a monthly basis. This will all be done in your name.
2. Your home is protected from loss
Your home is safeguarded from countless disasters, including damage from natural disasters, fire, and vandalism. No matter the extent of the damage, large or small, your home policy will assist in paying for repairs and replacements.
To ensure that you are getting best financial coverage possible, make sure you purchase or renew a homeowner’s insurance policy that doesn’t pay out damages on actual cash value but on a replacement cost basis.
3. Your personal belongings are covered by home insurance
In case your stuff is destroyed or stolen, but you are covered, you may be reimbursed for the value or your property. This policy covers your property no matter where they are — at home, in your car, at school, or in storage.
4. Your liability is protected by your homeowners insurance
Family liability insurance comes standard with most homeowners insurance policies. In the event of a lawsuit resulting from an injury that has taken place on your property, this insurance is designed to protect you from such an event.
Liability coverage extends to accidents that occur away from home, as well as medical and legal fees. It also covers lost wages if whoever is injured is unable to work.
5. Temporary housing after a disaster is included in your home insurance
If your home becomes uninhabitable after, say, a natural disaster or fire, your temporary living costs will not be a burden. Additional living expenses coverage could help pay the costs while your home gets repaired. These costs may consist of interim housing or expenses from hotels, laundry, and food.
The cost of homeowners insurance depends on different factors such as location and age of the house, the value of personal belongings, and the insurance deductibles you have chosen. Your policy rates could also be affected by the type of breed your dog is if you own one, or if you are an owner of a trampoline or pool.
Do you have a question about homeowners insurance? Click here to contact Davco Insurance today!