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10 Reasons to Buy the Right Homeowners Insurance

Homeowners insurance is an important policy that protects you, your home, and your assets. There are just some scenarios you cannot foresee, such as a fire, tornado, or hurricane, and they can prove costly to repair the damage, rebuild structures and replace belongings, without the right homeowner’s insurance in place.

Homeowners insurance is not a requirement by law, but is often required by your mortgage lender. However, regardless of whether it is required or not, it is certainly a worthwhile investment.

Homeowners insurance requires you to pay a small fee each month, which is usually tacked into your escrow payments, for peace of mind and security in return. Your home is an enormous investment filled with precious belongings and memories (and maybe even a costly extension!) and insurance will help you protect your investment in a variety of ways.

There is a range of different insurance policies to choose from, and the right one will depend on a variety of factors, which an insurance agency will be able to assist with.

Now without further ado, here are 10 reasons homeowners insurance is crucial.

1) Value for Money

The cost of homeowners insurance will vary by the insurance company, the type of property, the value of the property, how old your property is, the location, number of assets, and your credit score.

The right kind of insurance company will tailor a solution to provide you with a comprehensive solution that proves valuable for its costs. This means the cost of the insurance is invaluable if your property was damaged and required repair or replacements, as the cost without insurance will break the bank.

2) It’s a Requirement With Your Mortgage Lender

In most cases, homeowners insurance is required by your mortgage lender. This is to ensure the financial investment they are making on your property is adequately protected if the property was damaged by a fire or natural disaster, for example. Your mortgage lender will require proof that your property has been insured by a trusted agency.

There are some additional types of insurance policies that may be required by your lender, such as flood insurance if your property is located in a high flood area.

3) Protects the Equity You Have Built

Purchasing a property is a large investment, and often one of the biggest we will ever make in a lifetime. The key is to keep the value of your property more than the outstanding debt of your property in mortgages and other liabilities.

If you choose to build on or renovate your home, you are building equity. Protecting the equity in your property is crucial to saving you from having to rebuild if there was any damage or loss to your property.

4) Protects Dwellings

The right type of homeowners insurance will not only cover your home, but also other structures that you own within the vicinity to your property if they are also damaged or destroyed. This can include structures such as your shed, garage, decking, or fences. You must make your insurance company aware of these dwellings to ensure they are secured against the policy.

5) Protects Your Assets

Homeowners insurance does not just protect the physical structure of your property, dwellings, and equity, but it also protects your assets. These can include your furniture, clothes, kitchen appliances, electronic appliances, and much more.

If your property is damaged or destroyed, it can become costly to replace all your belongings. An insurance policy will require a detailed inventory of your belongings when taking out the policy to ensure that it can be covered in the event of loss or damage. It is also important to update your policy if you purchase expensive items after the initial inventory is taken.

6) Protection From Disasters

Homeowners insurance will cover your house if it is damaged or destroyed by a man-made or natural disaster. This can range from a hurricane, tornado, fire, and much more that will be detailed within your policy. These kinds of disasters, although not common in some areas, can wreak havoc and devastate your property. Costs for reconstruction can be expensive.

However, most insurance companies will not cover the costs of floods. This usually requires an additional policy for those in a high flood risk area. The right insurance will ensure the entire property is covered in such an event and will replace your property or repair any damages caused this way.

7) Personal Liability

Homeowner’s insurance will provide you with personal liability to protect you from lawsuits. In the unfortunate event that someone is injured in or on your property, even accidentally, you or your family could be held legally responsible.

The right kind of insurance will cover you for anything from a slip or a fall to a dog bite. The insurance typically covers the injured party’s medical bills and any subsequent damage to the property as a result. They may also assist with legal fees if the matter goes to court.

8) Protection Against Crimes

As long as your policy accurately represents your possessions, your homeowners insurance will not only cover the damage created by acts of robbery and theft, it will also cover the costs of replacing the items that were stolen. Your policy also needs to be updated regularly if you have new, expensive items in your home.

9) Provide You With a Rental or a Hotel

In the unfortunate event that your property is no longer habitable after damage, your homeowners insurance may cover the costs of a hotel or rental property for you and your family to stay in until your property has been restored.

10) Peace of Mind

The most important thing your homeowners insurance can provide you with is peace of mind. The right kind of insurance will protect you from any type of loss or damage caused by a natural disaster or crime, such as a robbery. With homeowners insurance, you will never be left out of pocket or have to worry about the costs of fixes or replacements.

Buying Homeowners Insurance

Homeowners insurance is important to keep you and your property protected, as well as your equity and belongings. Unfortunately, there are just some events that cannot be controlled and they can have a devastating impact on your home. Without the right type of insurance, you risk being left with the astronomical costs of repairing, rebuilding, and replacing your property and belongings.

Contact your insurance agency today, so you can find the right policy that will protect your property!