Home insurance is not a luxury but it’s a necessity. Not just because it protects your property and possessions against damage or theft. Home insurance is not a requirement in many states but most banks and mortgage lenders insist you must have this. Why? Plain and simple. Insurance protects the lender’s investment in case the house has been damaged. Lenders typically want homeowners to carry enough insurance to cover the cost of the mortgage.
If you cannot purchase insurance, the mortgage company or bank will supply a policy called forced coverage. Whatever you do, try to buy a homeowner’s policy yourself. Forced coverage policies are extremely expensive and will cost you a lot of money and protect only the interests of the mortgage company, not you, your family or your stuff.
Let’s find out the reasons and benefits on why you should get a home insurance in this blog.
It protects you from losses
Home insurance will pay to repair or replace your house if it’s damaged by fire, hurricanes or most any other type of natural calamities – except floods — and man-made calamity. Always remember when buying a homeowner’s policy that you need enough coverage to replace your house. They say that about 75% of U.S. homeowners do not carry adequate insurance policy on their home.
Whether it is an unexpected windstorm, a tornado or hurricane, homeowners insurance will pay for the repairs, even if the house or its adjoining structures were destroyed. Be cautious! Some natural disasters like earthquakes, require special policies. In addition, flooding is not covered in most homeowner policies. Instead, you need to purchase a separate flood insurance for your property from the federal government’s National Flood Insurance.
It protects you against robbery and theft
A homeowner’s policy will reimburse for the actual cost value in cash or replacement costs. To make things go smoothly at the time of the claim, inventory all the costly items in your house. Not only document them on paper, but also take pictures and save receipts. I wouldn’t put the inventory on a computer — it might be stolen, too.
It gives you a peace of mind
Peace of mind is the main benefit of having a home insurance. Always remember, insurance companies are not doing you any favors. Because to them, you are just a number. They do not want to pay. Sometimes, they will hedge, they will balk and they will say your contractor’s a crook. Bear in mind that it is your money. So stand your ground. If you feel like you are being mistreated, call your state consumer protection or banking and insurance agencies.
Everything has a value
Always remember this: everything has a value. Home insurance covers two things – the construction of your house and the contents within your property. To be able to understand the difference, just look at it this way: If your house were turned on its head, the former is what would stay in place and the latter is what would fall down. It includes pricey domestic appliances, light fixtures, furniture and many more.
You need a cover regardless of where you live
Even if you are just renting an apartment, or are living in a housing society, you need to get your home insurance. For example, if you live in a housing society that includes insurance in your lease contract, you may not have protection. If you are just renting a property, you may only get protection against fire and burglaries.
Jonalyn Cariño 