Some home buyers get the notion that homeowner’s insurance is an unnecessary expense. On the contrary, getting homeowner’s insurance is the benchmark of a responsible home buyer, whether you are closing in on a regular home or an upscale one.
There are many benefits to reap from getting homeowner’s insurance. Read on to learn why insuring your home is a genius idea:
It protects your property
Dwelling protection is one of the main coverages of a homeowner’s insurance policy. It pertains to the entire home itself, as well as structures attached to it like a deck, garage, or porch. Having a homeowner’s insurance gives you a safety net to fall back on in case of emergencies. It gives you partial or full compensation to repair or rebuild your property in the event of one of the following:
Most homeowner’s insurance policies also have living expense coverage. This helps you pay for temporary living costs if your property is considered uninhabitable after an incident.
In the event of a disaster, homeowners without insurance will have to shoulder the expenses for all of the damage.
It protects your personal belongings
Homeowner’s insurance also provides coverage for your personal belongings. This includes electronics, furniture, appliances, clothing, and jewelry.
If your items were damaged or destroyed by a covered risk, an insurance company can reimburse or replace the cost. This coverage is beneficial to those with rare items such as artwork, collectibles, and the like. You can also opt for optional coverages to better protect your other valuables.
It protects you from liability
Liability coverage is one of the most important aspects of homeowner’s insurance. It protects homeowners from lawsuits filed by neighbors, guests, and the like. The coverage encompasses damages or injuries caused by the homeowner or other people living in the house.
For example, if a guest is injured while on your property then sues you for damages, your liability coverage can cover some of your legal expenses. If you’re found at fault for the injury, your insurance will help pay for the medical bills.
This policy can also protect you if you damage another person’s property. If you accidentally run over your neighbor’s mailbox, for instance, your liability coverage can assist you in replacing it.
Tips for finding the best insurance policy
- Find out what your insurance covers and what it does not. People often assume that flooding, earthquakes, and mold are covered by their standard insurance policies but they are not. Check with your insurance company and ask about the complete coverage of your insurance policy to find out if indeed, it covers all the bases.
- Know the difference between repairs replacement cost and actual cash value (ACV). A repairs replacement cost means your insurers will pay for the damages in full minus your deductible.
Meanwhile, ACV pays for the estimated worth of the property at the time of the damage—which is usually less than the cost of replacement.
- Shop around for the best insurance deal. Insurance companies have their own homeowner’s insurance policies so it’s best to compare and contrast. Look around and find one that best fits your needs.