A lot of people have homeowners insurance without knowing why, but it’s not just to cover property damage or to be legally required to have it. If you want to make sure that you’re protected if disaster strikes, read on for three reasons you need homeowners insurance.
Protect Your Finances
Homeowners insurance protects you financially in case something goes wrong with your home. According to Zillow, if a fire destroyed your home, replacing it and everything inside it would cost an average of $230,000. And if damage from such a disaster were extensive enough to force you to move out of your home for more than two weeks, you’d lose another $42,000 or so. Most homeowners insurance policies offer coverage for between $100,000 and $300,000 (depending on where you live), which is enough money to cover a big chunk of your financial losses from these types of disasters. By keeping good records of what’s inside and outside your home—from painting photos to receipts—you can also help speed up claim settlements in case there’s a loss.
Protect Your Property
Homeowners insurance will protect your property and belongings in case something goes wrong. When you have homeowners insurance, should a fire or other disaster occur at your home, you can pay to rebuild, replace or repair what was damaged. If someone becomes injured on your property, liability coverage will cover any costs associated with an injury. There are several reasons why home insurance is so important; without it, you could lose everything if a catastrophe occurs. Protect yourself by purchasing home insurance today!
What’s more, home insurance typically covers personal belongings inside your home. This means that if they were lost or stolen due to theft or burglary, they would be covered under your policy as well. Lastly, home insurance also provides you with valuable financial protection in case of legal problems.
Protect Yourself From Liability
Every homeowner will be sued at some point in their life. Homeowners insurance can protect you from legal liability if someone gets hurt on your property, or if they accidentally cause damage while they are visiting your home. If someone sues you and you aren’t protected by homeowners insurance, you could be responsible for paying all of their damages plus court costs and legal fees. Although most people don’t think about it when they move into a new home, buying a homeowners policy is a vital part of homeownership—not just for yourself but also to protect anyone else who enters your home as well. It only takes one accident to leave you with thousands of dollars in medical bills, not to mention any other damages that might occur. Homeowners insurance protects you from financial ruin should something like that happen. Make sure you have enough coverage so that if anything does go wrong, you won’t have to worry about being able to pay for everything out of pocket. For example, many policies start at $100,000 worth of coverage; however, you may want more than that depending on how much money your home is worth and how many personal belongings are inside.