The importance of homeowners insurance The crack of thunder wakes you up in the middle of the night. You look out the window to see lightning glittering across the night sky. Heavy rains are falling on your new home. The rains soon turn into puddles. Those puddles begin to build up and before you know it, you are dealing with a flood. You pause to think if you have insurance or not. This is the wrong time to decide if you are covered. Insurance can help keep you safe in the times of trouble that roll your way. Below are some of the benefits and why you need to be covered for the worst.
Help during Hazards Homeowners insurance covers things such as all of the hazards that can unfortunately happen to your beautiful home. For example, if a fire comes your way, you can rest easy knowing that even if your home takes some of the damage from the fire, you can get still get many of your things back such as the burned up items in your house. The amount of money you get back is equal to the original price minus the total amount of depreciation. Obviously if you paid 1000 dollars for you bed you won’t get that full amount back because it has depreciated and lost some of it’s value over the years.
Protection from liabilities This is an important one. People are accident-prone. Accidents happen and no matter where they happen someone can is up for blame. If you have uneven concrete steps up to your home and someone trips, you can be liable for their medical bills because it was on your property. This type of insurance helps so that you can pay for the bills that will be associated with the medical expenses. Something to watch out for though is that many companies have a limit. Make sure you are aware of this because you will have to pay what is after that. Making sure to have homeowners insurance for the liability aspect can mean money in your bank account or bankruptcy. Medical bills can quickly add up and leave the owner of the home with bills that they may not be able to pay off. Don’t let these amounts get on top of you and make sure that you get homeowners insurance for at least the liability aspect of this.
A requirement for mortgage If you are looking to get some extra cash and need to take out a mortgage, than you need to make sure that you have some insurance for your home. Many companies won’t lend to people who don’t have insurance on the home. For a mortgage, you are offering the home up as collateral and consequently, the bank wants to make sure that nothing happens to the collateral, so at least some kind of hazard insurance is a must.
The bottom line No matter what you decide to do as far as homeowners insurance, go and get some kind of basic coverage at the very least. Whether you live in Seattle or Monroe, homeowners insurance will you give you the peace of mind you need to know that your house is safe. Photo Credit: Leeca, mistermast