Having your own home is nothing short of a dream come true. Buying or building a home is a life milestone many of us dream of for years—even decades. And when we finally achieve this dream, it’s only right that we want to do everything we can to protect and safeguard this property. As a new homeowner, you’ll know about ‘home insurance’. While it’s not required by law, 85% of homeowners in America have home insurance because of its value in protecting the house itself and even homeowners. Paying for home insurance every month can be a bit of a sting but the peace of mind it gives you will make it worth it.
Your own house is one of the most valuable assets you can ever own and having home insurance will help protect that asset.
What is home insurance and what does it cover?
Home insurance is made up of coverages that protect your home and family from a variety of unexpected events. Just like any other kind of insurance, it helps you with the financial burden that comes with repairing your home or replacing parts of it and certain belongings in case of fire, theft, windstorms or other kinds of peril. Standard home insurance includes four key types of coverage: dwelling, other structures, personal property, and liability.
Why you need home insurance
It protects your house
After the big expense that comes with getting a new house, you probably don’t have a lot of money readily available if something unexpected happens. Getting home insurance helps you prepare for times like this. If worst comes to worst and you need to repair or rebuild parts of your home, having home insurance provides the cover that you cannot shoulder because you have already invested heavily.
However, it is important to note that not every repair that your house needs will be covered by insurance. Home insurance will only pay for damage caused by unexpected and unavoidable perils. Home repairs that are preventable and are caused by neglect and inadequate maintenance such as repair for a faulty sewer line or pest infestation will not be covered by home insurance.
It protects your belongings
Home insurance does not only protect your actual house, but also the items inside it. Your personal property inside your home such as furniture and appliances will be paid for by the insurance company in the case of theft, fire, or robbery. While it is always disheartening to have your precious valuables stolen, having money to replace some of it is an enormous help in getting back on your feet.
It protects you from lawsuits
Accidents are sometimes unavoidable and no one’s fault. In the case of someone getting badly injured inside your personal property, home insurance will protect you if anyone decides to sue you for damages. For instance, if a neighbor’s child gets badly hurt in your backyard pool while playing with your kids, having home insurance will help you pay for the medical fees.
Shelling out money every month for your home can be quite an expense but home insurance is one of the best ways to protect your home, family, and belongings.