Your home is your castle. It’s a safe and secure place where you can relax and make memories with friends and family. It’s also one of your biggest investments. That’s why it’s important to protect your property with homeowners insurance.
More than 90 percent of all property owners have safeguarded their homes with at least some insurance, according to the Insurance Information Institute. That still leaves millions of homes uninsured, and at risk of major financial losses in the event of natural disaster or other tragic events. Here’s why homeowners insurance is essential:
1) It protects your home and other property
Even the most basic homeowners insurance safeguards your property against a variety of potential hazards, including fire, vandalism, severe weather (tornadoes, hurricanes, high winds, hail), and more.
Regardless of the extent of damage or destruction, your policy can help pay for repair and replacement — saving you money in the event of unplanned circumstances.
In addition, if your home is deemed uninhabitable following a catastrophic event, additional living expense coverage (standard in most policies) can help pay for temporary living costs while your property is being repaired, or while you search for alternate means of shelter.
Some policies also offer reimbursement or defrayed replacement cost of personal belongings such as furniture, appliances, clothing, and more.
2) It protects your liability and includes essential allowances
Covering more than just structural issues, some homeowners policies can also protect you in the event of a lawsuit due to injury on your property.
For instance, if a neighborhood child decides to take an uninvited dip in your backyard pool, and then gets hurt when they accidentally slip on the deck, you could be held legally responsible. Liability insurance as part of your homeowners insurance policy can also help pay for necessary medical bills, legal fees, and even lost wages.
In addition, this option helps preserve your home’s equity. For example, when you make renovations and updates to your home, the value increases. Adequate insurance that is properly updated to reflect such improvements protects your investment.
3) Your lender may require it
While not a state requirement, more lenders today demand that homeowners provide proof of insurance. That’s because it protects your property from damage caused by severe weather, fire, and even vandalism.
In some cases, if you don’t purchase insurance (or don’t keep adequate coverage), your lender could buy a policy in your name and add the cost to your monthly payments. Lenders don’t usually shop around for the best deals, so in this case, it’s likely you’ll be paying a premium for coverage you could be getting at a reduced price. Contrary to popular belief, homeowners insurance is affordable. There are options to satisfy most budgets.
4) It’s easy to get started
As you consider the right policy for you and your family, it’s also important to consider what could happen if you’re not insured. For most homeowners, the resulting fallout from a disastrous event would be financially devastating. For these reasons and many more, the risk of living without homeowners insurance is simply not worth it.
Since 2002, we’ve been helping people just like you with their insurance and risk management needs. Contact us today to discuss the best options to financially protect your property.