Investing in Home Insurance & Peace of Mind
March 3, 2020
Why Investing in Home Insurance Will Save You Later On
Owning a home is one of the biggest milestones one can ever achieve. Your home is your safe haven where you can relax and make memories with your family and friends. If you value something, you’ll definitely want to take good care of it. Owning a home should not be an exception. Disasters like floods, accidents, and fires can sweep away your investment within a twinkle of an eye. Therefore, to ensure that you protect yourself from such devastating losses, it’s important to invest in a home insurance coverage. This type of insurance gives you peace of mind in several ways.
Here is why homeowners insurance is an investment in peace of mind:
1. Protects your Home and Other Property
The most basic home insurance coverage safeguards your property against many potential hazards. Hazards include theft, vandalism, fire, severe weather (hail, high winds, tornadoes, hurricanes, etc), and more. Regardless of the severity of the damage, your policy can help pay for the replacement or repair.
Moreover, if your home is inhabitable following a disaster, your policy may cater to additional living expenses. Additional living costs may include a hotel or house rental during your home repair. Some policies even offer reimbursement or replacement costs of damaged or lost personal belongings like furniture, clothing, appliances, and more.
2. Protects you from Liability
Home insurance safeguards you and your property. Some policies will protect you in the event of a lawsuit for injuries or damages on your property. For example, if your neighbor’s child accidentally dips in your backyard swimming pool and gets hurt or when a visitor accidentally slips on your driveway, you may be held legally responsible. If you keep pets, a simple dog bite liability can attract huge losses in lawsuits. Liability insurance is often a part of homeowners insurance and is there to pay for necessary medical bills, lost wages, or legal fees.
3. Provides Peace of Mind for Your Lender
Other than giving you peace of mind, a home insurance policy is nowadays a requirement by most lenders. That’s because it protects the property from damages emanating from unplanned disasters like fire, severe weather, or vandalism. In some instances, your lender may choose to purchase the home insurance coverage on your behalf and add the cost to your monthly repayments. That’s an indication of how lenders don’t take their investments for granted, and you have no reason to.
Types of Home Insurance
Not all home insurance policies are equal. Before purchasing a policy, understanding what it means is very important. The common home insurance coverage types include:
- Dwelling Coverage – Dwelling coverage protects the physical structure of the home. The amount of coverage required is based on how much it would cost to rebuild the home in the event of an unplanned calamity like fire, theft, vandalism, hail, etc. It takes into account the value of the home and the percentage you want the policy to cover. Note that this policy is often made to replacement costs, which can fluctuate over time due to changing construction and labor costs. A periodic review is always a good idea.
- Other Structures Coverage – This policy will cover other structures within your property that are not directly attached to the home. Examples are sheds, detached garages, and fences.
- Personal Property Coverage – Covers personal belongings in the home, including clothing, furniture, electronics, jewelry, and other valuable items. These items can be lost or broken due to theft or nature disasters.
- Liability Coverage – Protects you against damages and legal expenses if a member of your household is responsible for harming someone or causing damage to their property.
- Medical Protection Coverage – Offers protection to guests who may be accidentally injured while on your property and require medical treatment.
As a homeowner, you should consult with your agent annually to make sure that your home insurance coverage is proportionate to the value of your home and assets. Also, be sure to have adequate deductible depending on your situation and take up any additional coverage you may need for your expensive items like jewelry, art, or collectibles. Covering these items are often not under the ordinary homeowner’s insurance.
Before you sign up for a home insurance coverage, shop around for the best deal. Therefore, read through the fine prints detailing the terms and conditions of the policy. Unlike most insurance policies, home insurance coverage rarely require you to give personal information like employment status or health reports. All you need is to pay the premiums promptly so you and your home have coverage.
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