Whether you are about to buy your first home or you’ve just successfully paid off your mortgage, you are probably wondering a few things about homeowners insurance – namely, do you really need it?
Because it isn’t cheap to insure a home in the United States. In fact, over the last 10 years homeowner’s insurance rates have increased by 50 percent. It’s little wonder so many of us and questioning if insuring our homes is worth it anymore.
The simple answer to that question is yes, it is. After all, your home is probably one of the most valuable assets that you own. In fact, we’d be very surprised if it isn’t the most valuable. As a result, you need to protect that investment as best you can, should any misfortune befall it.
With that in mind, here are some of the key reasons as to why having homeowner’s insurance is so important.
It might be a condition of your mortgage
If you’ve taken out a mortgage, then chances are you won’t have much of a say in whether you have homeowners’ insurance or not – it could be a condition of the loan. Before funding your purchase or refinancing, your mortgage lender may ask you to prove that you have adequate cover in order to ensure that their financial investment is properly protected should it be damaged or destroyed.
If you don’t have cover, then your lender is allowed to buy homeowners’ insurance for you and charge you for it. It’s therefore in your interest to secure the best deal financially that you can, rather than have a potentially more expensive policy forced upon you by your mortgage company.
It covers any damage to your home
The most obvious reasons for having homeowners’ insurance is that it covers any damage to your property. Say you need to have emergency roof repairs due to a hurricane or tropical storm blowing in or an earthquake or other natural event causes subsidence which needs fixing as a matter of urgency. Homeowners’ insurance will allow you to carry out the work required safe in the knowledge that you are covered for it. You can then look towards emergency roof repairs Charleston, SC.
That’s becoming particularly important as the United States continues to be hit with extreme weather events on a more frequent basis, with weather disaster costs in 2018 topping $155 billion.
Away from the main property, certain homeowners’ insurance will also cover detached structures, such as fences, garages, and sheds. If any of these are damaged by a natural disaster, then you may be able to claim.
It can pay for living expenses should you be forced from your home
In the event that the damage to your home is too great for you to continue living there until serious repairs are carried out, then you homeowners’ insurance can help to pay for temporary accommodation and living costs.
Say your home suffers fire or weather damage. Without the relevant cover, you might be forced to find the money for hotel bills until the property can be restored to a suitable standard for living in. With homeowners’ insurance, that can all be taken care of as well as certain living expenses that you incur due to your homelessness situation.
Personal property can be covered by your policy
Homeowners’ insurance doesn’t just cover your physical building, but your own personal property as well. That means that if you suffer a break-in or burglary or something of value is lost or stolen, you may be able to claim the value of the item back.
The statistics surrounding burglaries are astonishing. There are over 2.5 million per year with one occurring every 65 seconds. Most startling of all is that the average loss per burglary is $2,416. That is a lot of money, which makes having homeowners’ insurance which could potentially cover it worthwhile.
It can cover you in the event of a guest getting injured on your property
If you like having guests come to stay, then your homeowners’ insurance is a potential lifesaver should an injury or unfortunate incident befalls them. The last thing you need when hosting visitors is for something to go wrong and they end up with an expensive medical bill, be it your fault or through their own negligence.
Should your policy include a provision for guest medical protection, then that may help to pay for their medical bills or anything else they wish to try and claim against you. Accidents do happen, but homeowners’ insurance can help to lessen the damage of the fallout from them.