Hello World! Welcome Friends! What is homeowners insurance? This includes a small fee that you pay periodically to an insurance company that agrees to cover any damage that occurs to your home and its components. Damage can usually result from many different sources.
If you are a homeowner, you must acquire insurance for your home. While it may seem like a luxury, homeowners insurance is a requirement for landlords if you’re looking to acquire a loan from the bank. Insurance can also secure your property from theft or damage by various means such as fire. When borrowing from a bank or mortgage company, you will be required to provide at least proof of property insurance for your possessions to be allowed to apply for a mortgage loan. Whether you’re a homeowner or a renter, it is crucial to have some insurance for your home. This article will take you through the benefits of having homeowners insurance.
Protection for your Home/Dwelling
While locking up your property may make you feel safe, it is not enough to protect you or your loved ones from the dangers the world poses. As for physical hazards such as theft and burglary, locking up your house may prove to work. But what happens when you’re faced with natural disasters such as floods, cyclones, and landslides? In such cases, having home insurance may prove vital as you will be compensated for any damage taken to your house and property.
You can opt to insure 100% of the value of your dwelling, but it is still okay to go for 80% or 90% of your total home value. The insurance policy primarily insures against significant damage, minor damage, and complete replacement.
Protection for your Assets
Apart from just protecting your house, this type of insurance also safeguards all the property within your home when the danger strikes. So items such as clothing will be compensated in the event of an accident such as flooding.
Therefore, it is paramount to take note of all the contents of your home while taking your policy to know what will be covered by the policy. If the policy covers a storm or disaster, your property gets damaged, the insurance company will reimburse you part or whole of the destruction done to your property. This is one of the significant benefits of this type of insurance.
Compensation of your Separate Structures
When taking out insurance for your home, you also insure the structures attached to your dwellings, such as a garage, a gazebo, fence, or dog house. If there is a fire and your home burns down, the fire may spread to other areas such as the garage or fence. According to the insurance policy, if these get razed down, the insurance company will compensate you accordingly for these detached structures.
It is up to you to liaise with your insurance company on what percentage you want to insure your detached structures against. Most homeowners settle for 10% of the total main house insurance value.
Emergency Vacation Insurance
Another great benefit of this type of insurance is that if your home suffers damage against a disaster such as a hurricane, the home policy provides for any funds you may need to acquire temporary shelter such as a hotel. It will also cover any food and travel expenses as required. The loss of use component of your policy is a valuable benefit that comes in handy when your house is in the process of being repaired or rebuilt.
Protection Against Liabilities
A house insurance policy also protects you from any liability that may arise due to damage caused to a third party by you accidentally. The cost of medical bills that may occur to cover for injuries caused to someone else on your property may well be in the tens of thousands of dollars.
However, if you have home policy insurance, you won’t have to worry about these medical bills as the company will take care of them. You should also note that while the policy protects other people’s injuries on your property, your or your family’s injuries do not count under this type of insurance. Its main goal is to save you the cost of lawsuits and damages that arise from injuries such as dog bites to other people in your dwelling.
Conclusion
While a homeowners insurance policy isn’t a requirement by the law, it is essential that, as a homeowner, you consider and weigh the benefits of getting one. You can always visit your insurance company and get a customized policy that will best suit your needs, for example, if you own more than one home or if you’re a renter.
With the many benefits offered by this type of insurance, you can save yourself lots of costs in damages and repairs in case of a disaster or a break-in in your home.
Click the links below for any posts you have missed:
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