Home insurance covers damages or losses in your home due to a natural disaster, theft or burglary. Your home is typically your most important possession second only to your family.
Besides your loved ones, nothing is more important or as valuable than your home. There are times when you save for many years in order to have enough capital to purchase a new home. Generally, you are trying to safeguard it from any unforeseen threat such as a theft, burglary, fire, and natural disasters.
The best way of doing that is by buying a home insurance policy for you. You must have to buy a home insurance policy if you want to keep your home safe or want to get paid as a result of any kind of loss or damage.
We are going to discuss some major reasons to buy home insurance for your home. By going through these reasons, you will surely understand the importance of home insurance.
Peace of Mind
The first thing that home insurance provides, is peace of mind. After buying home insurance, you will feel that your home is now safe, and in case of damage or loss, you will have nothing to worry about the financial losses.
Home Insurance will put your mind at ease about something that is potentially going wrong with your home. Some people even develop stress and anxiety to take the security of their homes. Home insurance is the best way to relieve this stress and anxiety.
Home Insurance Protects Your Home Against Theft
In the event of a home invasion or theft, your home insurance provider would reimburse you for any and all items that were either stolen or damaged. You will receive a payout for all the items according to their cash value or replacement costs.
It is important for you to keep all the costly items in a documented format to avoid any issues during your claim. You should also take pictures and save receipts of costly items in your home so you can give proof to your insurer that these things are stolen.
Home Insurance Protects your home against Natural Disasters
Natural disasters like floods, earthquakes, hurricanes, and other environmental factors can be a big danger to the security of your home. Home Insurance protects you against these natural disasters.
Your insurer will pay for the repairs to your home in case of these natural disasters. However, some special home insurance policies are required for covering disasters. For example, flooding is not covered in most of the home insurance policies. To get flood coverage, you have to buy a separate flood insurance from NFIP (National Flood Insurance Program).
A good home insurance policy, always protect your equity in your home. Equity is the actual property value excluding all other liabilities associated with that property. The equity of your property will increase when you renovate your home. Home insurance makes sure that you won’t have to start building your equity from ashes when something happens to your home.
Pays Medical Bills
You are surely thinking that paying medical bills is the responsibility of health insurance but in the case of home insurance, if any kind of injury happens to yourself or a third party due to your home, the medical bills will be paid by your home insurer.
Your home insurance will pay for anyone who got injured on the property due to an accident or natural disaster. The Medical bills will cover the expenses for the surgery, X-rays, and an ambulance ride. The expenses of hospitalization will also be paid by your home insurer.
Replace Things in the Home
In the event of a disaster, you won’t need to worry about whether you have a home insurance policy to cover those damages. Because your home insurer will reimburse you for the replaceable cost or actual value of your properties including clothing, home appliances, furniture, and all other types of possessions.
Many home insurance policies provide you the option on how you want to get insured your possessions. You can choose the replacement cost coverage or actual cash value.
You might be thinking that what is the difference between these two? As you know, most of the home possessions depreciate over time. With the actual value option, you can recoup the amount which you expect to get if you sold these items by excluding the depreciation.
On the other hand, the replacement coverage allows you to replace your personal insured property for what it would cost to buy them new. Replacement coverage is far more expensive than the actual cash value coverage in terms of primus.
It is very important to mention here that most of the home insurance companies provide personal property coverage only up to 70% of the total coverage of your home insurance policy. So, if your house is insured for the coverage of $1 million you will be insured up to $7 million.
Home Insurance Protects Your home from Lawsuits
A good home insurance policy will always protect your home from a lawsuit if someone gets injured on your personal property. For example, if your dog bites someone, your home insurer will probably cover you.
You can purchase additional protection home insurance policies to protect your home from lawsuits although most of the companies provide up to $100,000 coverage as liability insurance.
This liability coverage will pay the medical bills of the insured person and for the damaged property as well. The home insurance will also provide you an attorney through which you can defend yourself in the court.