8 Reasons You Need Adequate Home Insurance As much as 75% of homeowners don’t carry adequate home insurance, according to a study by Marshall & Amp. That means whenever a natural disaster strikes, many homeowners are left holding the bill for costly repairs—repairs that could have been covered by their insurance company. It’s important to know the reasons to buy home insurance so that you can find the coverage you need, specific to your area. Here are 8 reasons for purchasing adequate home insurance.
1. Your lender requires you to buy home insurance Not every state requires homeowners to have home insurance, but virtually all banks and mortgage lenders do. It’s pretty simple why—they want to protect their investment, but your lender is only going to be interested in insurance that protects them. It’s up to you to buy insurance that covers all your needs relating to your home.
2. Pays for repairs or loss of your home There are all manner of natural and man-made calamities that could cause extensive damage, or even outright destruction, to your home. Whether you experience an accidental fire, or a tree falls on your roof, your insurance company can pay for costly repairs or even the entire cost of the home.
3. Protects you from lawsuits If someone is injured in your home or on your property, they can sue you for damages. Home insurance protects you from these kinds of lawsuits. You’ll be protected even if your dog bites the mailman.
4. Covers your home in case of natural disasters There are special circumstances that need additional types of home insurance. If you need home insurance in Omaha, and you’re worried about tornadoes, or if you live in Florida and fret about hurricanes, you may need to purchase supplemental insurance relating to those specific natural disasters. Most private insurance companies do not offer insurance for flooding, so if you live on a flood plain you need to purchase flood insurance from the National Flood Insurance Program.
5. Replaces the things inside your home Not only does home insurance cover the actual house, it covers the things inside it. Make sure you keep a good inventory of the most valuable items in your home, to make the claims process go much smoother. Many people don’t factor in the value of the things inside their home when buying home insurance, so be sure to consider all your household items when you come up with the total value of your home.
6. Protects your home’s equity All the money and labor you’ve put into building up your home’s equity doesn’t have to be for naught in the event of a major disaster.
7. Gives you a place to stay If your home is rendered unlivable, your insurance company will pay for you to stay somewhere, like in a motel, until repairs are made.
8. Protection against vandalism and theft Whether you consider your neighborhood relatively safe or not, you’re still in danger of being burglarized and vandalized. Home insurance replaces or pays the value of your things that have been stolen. Contact Hollman Insurance today to make sure you have the best home insurance, before disaster strikes. Photo Credit: lawyersandsettlements.com