Why Homeowner’s Insurance is Something You Should Get as a Homeowner
Everybody wants to have their own house one day. It is one of the ultimate goals in life that most people achieve which others can only dream of. If you’re one of the fortunate ones that were able to buy a property, then shouldn’t you protect your investment? After all, for most regular folks, it will be the biggest investment and most valuable asset we will ever make in our lives so we might as well do something to protect it.
This is where a homeowner’s insurance comes in. It is not just an additional or unnecessary expense in buying a home, whether you’re just about to purchase a property or have already paid off your mortgage. Consider it as an investment that protects your investment.
Here are a few reasons why getting homeowner’s insurance is one of the wisest things you can do.
Homeowner’s Insurance is required in some cases.
When looking for a property to buy, most mortgage companies require prospective buyers to have homeowner’s insurance according to the Insurance Information Institute. A mortgage company will typically ask you if your home is insured adequately before it funds or refinances your mortgage. The lender wants to make sure that the money it will invest into your home is protected in case of damage or destruction.
On top of that, they might also require other forms of insurance such as flood insurance. These additional requirements will vary based on the location of your property
Now if you don’t have any protection at all, the Consumer Financial Protection Bureau states that the lender can purchase insurance and charge you for it. Do take note, however, that there is a huge possibility that they will get a more expensive policy with limited coverage. So it is still best that you be the one to look for the right policy that’s suitable for you as far as rates and coverage are concerned.
It gives you protection in other areas other than just your property
Contrary to what most people believe, a homeowner’s insurance covers more than just the house. Plenty of standard homeowner’s insurance policies include other important aspects of homeownership, even up to covering the medical protection of guests in case of accidents or injuries while on the property.
Here are a few notable coverages:
Coverage on dwelling
In some cases, depending on the policy, if your home or any attached part (such as a garage or a deck) is damaged by a covered peril, a dwelling coverage can help pay for its repairs like wall restoration or window installation. Take note, however, that the amount of coverage is computed based on your property’s square footage and how much it will cost to rebuild it, not on what your home’s market value is.
Coverage on other structures
The Other Structures Coverage included in a policy can help pay for the repairs or replacement of any freestanding structure on your property if they get damaged or destroyed by a covered peril. These cover structures like sheds, fences, carports, and other detached structures found inside your property.
Coverage on personal property
A homeowner’s insurance doesn’t just cover the actual structures on your property. Depending again on the police, it can include coverage on some of your personal belongings that are stolen or damaged, like cars, furniture, and appliances.
Coverage on personal liability
A Personal Liability Coverage is often helpful if you or one of your family members causes damage to someone else’s property or injures somebody and are found legally responsible for it. It can help pay for repairs, replacements, treatments, medical bills, and other legal fees.
Guest medical protection
Accidents can happen to anyone anytime, whether you like it or not. Just like personal liability coverage, guest medical protection coverage helps cover the medical bills of any guest that gets involved in an accident on your property and ends up getting injured in the process.
Coverage on additional living expenses
Now let’s say your home got damaged or destroyed. While repairs are ongoing, you might need to find another place where you can temporarily crash in. An Additional Living Expenses Coverage lets your policy pay for your home repairs and restoration but it also takes care of any additional costs for your temporary living arrangements.
A homeowner’s insurance was not created to be an additional financial burden to homeowners. Instead, it is designed with the homeowner’s best interests in mind and the protection of their property and hard-earned money. So the next time you ask yourself if you should consider getting homeowner’s insurance, there’s our answer.