A home is more than four walls and a roof over your head. It’s a source of comfort, where love reigns, and your source of security. In short, your home is your castle. It’s not just a place where you can have wonderful memories with your family but also a huge investment which should be covered by homeowner insurance. As a homeowner, you need to insure your property as you do with your car. Any damage or destruction could result in financial consequences, and that’s why you need to insure your house. Here are six reasons you need home insurance.
1. Your Lender May Require it
It’s not a state requirement to insure your house, but most lenders demand homeowners to provide insurance proof. The reason is because an insurance cover protects your home from damage imposed by fire, weather, or vandalism. If you don’t have one, your lender might be forced to buy a policy and put it in your name.
Remember that lenders don’t have time to find the best deal, and since the costs will be included in your monthly payments, you could be paying for expensive coverage. However, homeowners insurance is quite affordable so take one before visiting your lender.
2. Protects Your House Against Natural Disasters
Tornadoes and other natural disasters can happen when you least expect them. It’s God’s will! You can never prevent them from destroying your home, but you can buy an insurance policy that can pay for the damages.
The damage can be on the roof, or the walls and your insurance policy will cater for the repairs. Home insurance is something you should have especially if you live in a disaster-prone area.
3. Everything has Value
Home insurance can cover the structure and the contents within. Picture this. If your house was turned over, the structure might remain intact, but the contents would obey the force of gravity, and it would be catastrophic, so to say. Those items include all the appliances and the furniture you have in your home.
Most of us have invested in furniture and electronics that are costly. Some have inherited jewelry that is worth a fortune. Ensure you understand what the insurance policy documents entail and choose one that covers your items as well.
4. It Takes Care of the Medical Bill
In case there is an accident in your house, and someone is hurt, the home insurance policy takes care of the medical bills too. Guest medical coverage is included in most policies, and it pays for surgery, x-rays, ambulance, hospital stays, and funeral expenses.
There is also the liability protection which handles the lawsuits arising from what caused the medical bills.
5. It Protects Your Liability
Family liability insurance is part of most homeowner’s insurance policies. In case of a lawsuit from an injury that happened at your property, this insurance will protect you from such events.
Liability coverage extends to accidents that occur a few miles from home and can cover medical and legal fees. It also covers lost wages if the person injured is not able to work.
6. Provides Equity
The home remains the single biggest investment, and the insurance safeguards your home by protecting its value or equity. A home’s equity is all about its worth over and above the mortgage and other liabilities.
As a homeowner who makes payments, renovating the house and improving it, increases the value or equity of your home. The homeowner's insurance ensures that you don’t lose what you invested or be forced to build your house again.
Conclusion
Getting home insurance is a good move. It protects the property that you toiled for years to own. Imagine your house being carried off by a tornado in one sweep and you have to start from square one! Protect your property from natural disasters by insuring it. However, it’s essential to find an insurer who can take care of your needs. Read their terms and conditions carefully before buying their services. Happy hunting!
