About 1 in 20 homeowners have an insurance claim every year, and most of those claims are property damage. What would happen to you if something happened to your home? Do you have enough money to pay for a claim—the average homeowner’s claim was $8,787 in 2013.
Having homeowners insurance is always worth it for the peace of mind – and it’s often required. Here are the top reasons why you need homeowners insurance.
1. Covers Your Property Damage
Your home is probably the biggest investment you’ll make in your lifetime. Having homeowners insurance gives you a sense of security and helps you pay for damage to your home and structures from disasters like thunderstorms, tornadoes, vandalism, fire, and hail.
If you face a disaster, your homeowners insurance will kick in and help you pay for the repairs. You may want to ask your agent if the policy covers replacement cost or actual cash value. Replacement cost gives you more financial protection.
If the storm makes your house inhabitable, your homeowners insurance will also help pay for your temporary housing and living expenses. Other additional living expenses this insurance covers for interim housing include food, laundry, and storage space.
For example, your home is struck by lightning and catches fire. You can’t live in your home, so your homeowners insurance will help you cover the costs of staying in a hotel while your home is repaired along with your food.
In addition, your insurance will also cover the other structures on your home from damage. This includes garage, deck, fence, and shed. If a tree falls on your fence during a storm, your homeowners insurance will help you repair or replace that fence.
2. Protects You Against Liability Claims
In addition to paying for your property damages, your homeowners insurance will cover you from liability. This liability coverage protects you from a lawsuit if someone is injured on your property.
For example, a delivery driver trips on your step and needs medical attention. You may be held legally responsible to pay for his injuries. This is where your homeowners insurance protects you.
Liability coverage also helps protect you from accidents away from the home and your vehicle such as a golf incident on the fairway. This coverage also pays for medical and legal fees along with lost wages for the injured person if he or she has to miss work for a period due to injury.
3. Covers Personal Belongings
We’ve talked about the outside of your home—now, what about all the things you own inside like electronics, furniture, appliances, and clothing? Your policy will cover your personal belongings if they are destroyed in a natural disaster, stolen, or vandalized.
You may want to keep a record or inventory of all your expensive items in your home like appliances and tvs because this will help you when determining the price for your belongings if your home is destroyed. Don’t get overwhelmed with this list—it’s better to have something than nothing.
4. Required by Mortgage Lender
The state doesn’t require you to have homeowners insurance like auto insurance. Your mortgage lender requires it because it protects their investment. The minimum coverage for your homeowners insurance depends on the replacement cost to rebuild your home.
You can choose to pay your homeowners insurance through your mortgage payment by paying through escrow. This adds the payment onto your mortgage and the bank keeps this in an account and will pay your insurance premium for you, so you don’t have to worry about it.
5. Protection from Theft
Your homeowner’s insurance will also protect you from theft if someone breaks into your home. This includes any damage from this break-in along with replacing the contents.
In addition, your homeowner’s insurance protects you from theft away from your home. For example, it protects you if your laptop is stolen from your car.
6. Peace of Mind
One of the biggest benefits of homeowners insurance is that it brings you peace of mind to protect your biggest investment. You will not have to worry if something happens to your home because your insurance protects you and your family.
What is the Cost?
You are probably wondering how much homeowners insurance is. The cost varies greatly depending on your home, location, the value, and cost to rebuild your home.
Other factors that can affect your insurance cost include the breed of your dog and if you have something like a pool or trampoline on your property. You can lower the cost of your premium by choosing a higher deductible. You can also talk to your agent about multi-policy discounts by having your home and auto insurance with the same insurance company.
Finding Homeowners Insurance
You can request homeowners insurance quotes to make sure you are getting the best price and coverage. If you already have car insurance, you can check with that insurance company first to take advantage of any discounts as we mentioned above through multi-policy discounts or bundling your insurance.
You will need homeowners insurance to be effective the day of your closing. This means you should start shopping for insurance as soon as your title and appraisal are complete for your new home.
You will want to discuss your policy limits with your agent. This is the maximum your insurance policy will pay for a loss, so it’s important you know your limits to make sure you have adequate coverage.
Do You Need Homeowners Insurance?
Now you know why you need homeowners insurance. If you are ready to protect your home today, you are making a wise investment to give you peace of mind and help you recover from a disaster, theft, or liability.
To get started, request a quote from us today. We look forward to helping you secure and protect your home along with all your belongings by finding the right insurance for you.
