Everyone, from new homeowners to those just paying off the rest of their mortgage, has been told how a house is a massive investment. Because of the amount of money you are paying, or have paid, you want to make sure you’re prepared in the event of a disaster. Nothing protects you and your house better than homeowners insurance.
Some people, specifically first-time homebuyers, think that homeowners insurance is merely a way to protect you from damages. And while that’s true, homeowners insurance can protect you from other things as well. One of these things includes protection from liability issues. If you have a neighbor over, and they accidentally hurt themselves, you could be held responsible as it happened on your property. Most policies for homeowners insurance typically have liability coverage included.
If you live in an area where natural disasters are common (Hurricane Season is June 1-November 30), then homeowners insurance is an absolute must. Your home can sustain massive damage during a flood, snowstorm or harsh winds. In the worst-case scenario, your home may even get damaged to the point that you can’t live in it until the home rebuilding process is finished. This is where homeowners insurance comes in. Having disaster insurance helps with rebuilding your home after something happens. Furthermore, depending on the area you live in, your policy will offer a place for temporary housing.
Although homeowners insurance isn’t technically mandated by law, you’ll still need it if you’re acquiring a mortgage loan. Lenders want to make sure that they can trust you and that you’re not a high-risk client. It’s also worth mentioning that if you’re unable to provide proof of homeowners insurance, the lender will either decline or get homeowner insurance in your name. If the latter happens, the amount owed will be added to your regular mortgage payments.
Protecting Your Belongings
Lastly, homeowners insurance can compensate you if anything of value was lost, stolen or damaged. These items can range from anything from your television set to a pair of antique earrings. What’s more, homeowners insurance can help you out even if you’re not home. For example, if you had to run a few errands, and someone stole your smartphone, your insurance can come into play if you choose to file a claim.
Homeowners insurance is an essential thing to have regardless if you’re a first-time homeowner or buying your second or third home. Having a policy in place will keep you from having to dish out extra expenses to cover damages and lost possessions down the line.
If you want to learn about factors that may affect the price of your homeowners insurance, read on, here!