Before getting to know the great importance of home insurance, it is vital to have a deep understanding of what home insurance is.
What is Home Insurance?
As the name suggests, home insurance is a special type of property insurance that has your house covered from the likely occurrence of perils. Any danger you think about, be it accidents or thefts is covered under home insurance.
According to what you prefer, you may choose to buy a home insurance plan for a specific period, this way it covers you only for that duration. Such makes this insurance a contract, it is valid for a certain duration and is subject to renewal.
Why Home Insurance?
Your home is without a doubt one of your biggest treasures. It is a secure place where you enjoy some quality time as you relax with family and pals. Again, your home is one of the assets where you have had big investments. All these give you a reason to protect your property through home insurance.
According to the Insurance Information Institute, more than 90% of all homeowners have safeguarded their homes with some insurance. Why not insure yours too? However, millions of homes are still uninsured, and this poses a risk of vast financial losses to the owners, in case of occurrence of a disaster or tragedy that would affect the property.
Here are the reasons why homeowners should insure their property:
1. Protects the home and other valuables
No matter the home insurance, to some extent it safeguards your property against a couple of hazards if not all. Some of these include harsh weather conditions, weather, and thefts. In case any of these happens, the insurance policy will help pay for some repairs and even replacements. This way, you can save some money.
Again, if the occurrence of a catastrophe renders your home uninhabitable, the insurance policy may help pay for temporary housing as repairs are done or as you look for somewhere to settle. This saves you from the stressful hustle.
Better still, some insurance policies will cover even the property in the house. Such may help acquire new ones, such as furniture and appliances in case the previous ones are damaged.
2. Protects against liabilities
Home insurance policies cover liabilities too. Such covers you against injuries, cover guests or other third parties who may suffer the same while residing in the house. Your family members could also be held accountable for various damages to a visitor. This insurance covers all these, by paying for medical bills, lost wages or even legal fees. Generally, the home insurance policy protects you and your house from any legal problems that could arise.
3. A requirement by lenders
Though it is not a law that you have it, most lenders these days require that you have one. They will always ask for sufficient proof and if it is not available, you have no more business with them. The reason they ask for it is that it protects your property and valuables from damages or harm that could come from fire outbreaks, severe weather and even thefts.
Under some circumstances, some lenders even buy insurance policies on your behalf, but under your name. In return, the lender adds the costs on your monthly payments, and you pay bit by bit. This shows how important home insurance could be while it comes to you purchasing various goods.
4. May cover temporary living expenses
At the time of repair or renovation of a damaged house that was initially insured, the insurance policy will help sort your stay. The insurance company will cover all rent expenses you incur while the process of re-establishing your house is underway. This way you will not have to go through the strain and stress of trying to acquire emergency cash.
5. Easy to acquire
Getting started on taking house insurance is easier than you think. The first and vital factor to consider is to do your research and find out the best insurance company out there. Look for what they require for you to insure with them. Prepare the necessary documents and the money they will require you to pay. Once all these are ready, off you go, and you secure your house.
As you have seen, home insurance is as important as your insurance. Try figuring out what would happen once your house is not insured and a disastrous event occurs. This will hit you hard financially, and you may end up in a financial crisis.
Again, worse, lacking a home insurance policy may hand you a jail term though not a long one. However, no need to gamble. For such reasons and many more, living without home insurance is a big risk not worth taking. Do your research and consultations and come up with the best option to protect your property.