Whenever you bought a house or planning to mortgage one, you may want to consider the value of a home insurance. To some, the home is one of, if not the most, important and valuable asset you own. Hence buying an insurance will not only provide you with a fallback for all the expenses needed in repairs and replacement but will also protect your home, your investment and you in many ways.
If you are still having doubts about whether you should be buying a home insurance or not, then here are the following key reasons to choose from.
If you are planning to mortgage your home, you may be required by the lending bank to have a homeowner’s insurance. It is one of the standard requirements given by the bank. You will be asked to provide a proof that your home is adequately insured. The reason behind this standard requirement is that the lending company wants to ensure that its financial investment in your home is protected in cases the property is damaged or destroyed by fire or other natural calamities.
In the event you don’t have a homeowners insurance, your lending bank is allowed to buy insurance and charge you for the cost. But remember the insurance your lender may require can be more expensive than what you can buy on your own.
It Protects More Than Your House
The standard homeowner policy does not only offer protection for your house, but it is more than the physical structure of your home. The homeowner’s policy usually covers personal belongings, to other structures on your property, to personal property and legal liability.
Among the many inclusions of your standard homeowner’s policy are:
This offers protection for any attached structures, such as a deck or garage that is damaged by the listed covered loss such as fire and theft.
The other structures coverage is usually part of your homeowner’s insurance policy. This means if other structures on your property, such as a fence or the shed, got damaged due to covered loss, the policy will help pay for the repairs or replacement.
This is the insurance policy that covers your personal belongings including watches, jewelry, home entertainment, musical instruments, furniture, electronics, and the likes. Therefore if your belongings are stolen or got damaged, this policy will help in paying for the replacement of your belongings.
This is a policy where it covers the damages incurred when someone not living with you got injured due to a hazard inside your home. In the event that you are found at fault, your insurance company will help with the medical fees as well as with the compensation.
To ensure that you understand all the fine print included on your insurance policy, it is best to read all the terms and agreement and to as questions if necessary. Remember that your insurance policy always has a limit.