Owning a home is a remarkable achievement. But it also comes with numerous responsibilities. Not so long ago, many homeowners secured their homes by installing traditional locks and keeping guard dogs.
Unfortunately, these measures could not protect a home from damage, fires, and natural occurrences. This is why most homeowners today are taking home insurance for additional protection. Here are four reasons why homeowners' insurance is so crucial today.
Protects Your Home and Belongings
Home insurance safeguards your property against various potential hazards, including vandalism, fires, and natural occurrences like hurricanes, tornadoes, hails, and winds. Irrespective of the destruction caused, your policy will cover repairs and replacements, so you don't have to pay for anything from your pockets except the deductible.
Depending on the policy you have taken, you can also receive reimbursement for your personal belongings, including clothing, furniture, and appliances. Here, you can get actual cash value, which is the amount you would expect to receive from selling your items (minus the depreciation) or replacement cost coverage which is the amount it would cost to purchase new things.
Satisfies Your Lender
Most lenders require you to possess homeowners' insurance. This is to protect their investment in the event the property is damaged. Some mortgage lenders will even want your insurance to be high enough to cover the mortgage amount.
Without insurance, your lender could supply a forced coverage policy. However, this will be to your disadvantage, as most forced coverage policies are expensive and only protect the lender's interest. Therefore, having homeowners' insurance not only protects your property but could also save you money.
Protects You from Liabilities
If a visitor is electrocuted and sustains severe injuries while on your property, you may have to pay for their medical bills. But with home insurance, you don't have to pay a dime. You only need to add guest medical coverage to your home insurance. It will cover everything from ambulance ride costs to medical bills, x-rays, and hospital accommodation.
Loss of Use
There may come a time when you are unable to stay in your home for various reasons. Perhaps a massive fire has ravaged your home or a tree has fallen on your house, leaving a gaping hole on the roof. During such times, you may decide to stay in a hotel until the reconstruction is complete.
Thanks to home insurance, you can have 'loss of use' coverage to cover your hotel accommodation and other expenses you might incur, like travel costs and meals. Your life doesn't have to stop because your house is uninhabitable. Reach out to a professional for more information about home insurance.