If you’re not yet a homeowner, the importance of homeowner’s insurance might still be lost on you. But if you are considering purchasing a home any time in the future, you need to understand what homeowner’s insurance is – and why you need to have it. In the brief article below, we’ll explain just how necessary it is to have a homeowner’s insurance policy.
3 Important Reasons Why You Must Have Homeowner’s Insurance
You might consider yourself a very careful and considerate prospective homeowner, but no matter how cautious you may be, disaster can strike when you least expect it. That’s just life. Here are 3 very compelling reasons that should convince you of the importance of homeowner’s insurance.
It’s a Requirement for Buying a Home
Whether this is your first home or your 6th, you will likely be unable to purchase a home without also getting a homeowner’s insurance policy. While it may not be law everywhere you go, most lending institutions will not facilitate a mortgage for an uninsured home. Lenders want to feel confident that their investment into your future (the mortgage) is protected. Homeowner’s insurance is a part of that protection.
Rebuilding or Buying New is a Nightmare
Let’s say that your uninsured home is subjected to a devastating fire that’s totally out of your control. While an insurance policy would have helped you foot the bill to rebuild your home, not having insurance at all leaves the homeowner on the hook for the entire cost – plus the existing mortgage payments. Even if you’re one of the few people who can afford to take this kind of financial hit, this is a tremendous headache that can leave a family in an unstable situation until the home has been restored.
Liability Protection is a Life Saver
Not every homeowner’s insurance policy will have liability protection built in, but you can get this additional protection added to your policy for little cost. Liability protection safeguards a homeowner financially if another person gets harmed or their property gets damaged while they are on your property. Without this type of coverage, and if you/your home are responsible for an unfortunate accident, you could end up being responsible for paying accrued hospital bills and repay damage done to a person’s property in your home.
Protection from natural or man-made disasters
Whether it is caused by flooding, hurricane, fire, or any damage to your home and contents it is essential to purchase home insurance to protect your home and belongings. Homeowners insurance also protects you against damage caused by theft, damage to the structure of your home, and theft of contents. Regardless of the extent or damage to your property, your insurance policy should help pay for replacement or repair, saving you money in the event of unplanned circumstances.
Cover for Temporary housing
If your home becomes inhabitable due to a natural or man-made disaster such as a fire, you may have to find temporary accommodation until your home gets the necessary repairs that it may need. The costs of the rented accommodation are covered by your insurer under the homeowner's policy. It is always wise to be prepared for any circumstance and having home insurance will provide the financial support that you need in such situations that may occur.
Peace of Mind
Home insurance sounds like a luxury some people may not be able to afford, however it is worth every penny if it gives you peace of mind that your most valuable asset is protected from any disaster that may strike at any time. When buying home insurance, it is important to opt for the best policy offering the best cover and price suited to your budget and needs.
Protects you against Lawsuits
If you accidentally damage someone else's property due to the spread of fire. Due to this incident, there will be a lot of legal hassle involved. Home insurance will have you covered for any costs for the damage caused to the property due to this incident. Your insurance policy also covers you for the costs of the medical expenses of the guest or visitor injured in your property at the time.
It is easy to get set up
It has never been easier to get started by setting up a homeowner's insurance policy. Simply call your insurance company to discuss your needs and they can tailor a policy that is suited to you and your budget. The insurer will discuss the best options for you to financially protect your long-term investment which is your property.
What is the Average cost of Homeowners Insurance?
The home insurance market is very competitive. Most companies selling insurance are prepared to negotiate with those consumers who have done their research and know the deals that are on offer. On average, most property owners can save up to €300 to €350. The cost of home insurance depends on many factors some including the size of your home, the type of property, and do you have extra security measures in the home. The average cost from an online broker is €231.
There are many more reasons to invest in homeowner’s insurance, as your insurance company will assuredly tell you.