There are some basic needs in our day-to-day life: food, clothing, home, education and medical services are the five basic human needs. Among these five basic needs, home definitely takes the top three spot. Home is not only a shelter where we sleep at night, but also it’s a place where we belong for our entire life sometimes, what we love, where memories are made and what we miss when we are away. Having a home of our own is a dream come true. Everybody tries hard to have a home of their own. But, when you finally have a place of your own, you should also be aware of the potential risk factors. Opting for homeowners insurance is a great way to secure your property in case of any loss or damage.
What is Homeowners Insurance?
There are several kinds of insurance that we take for the betterment of our life. But this is also true that many people do not understand the importance of having insurance. Anyways, property insurance is one of the most popular insurance policies. Nowadays, many people are taking property insurances for the safeguarding of their properties. These insurance policies vary from the types of property to property. To illustrate this matter let’s take an example. If you own a car, you may have car insurance. On the other hand, if your brother owns a shipyard, he also may have taken the insurance policy on this. These two types of insurance policies won’t be same because of the difference in property type.
Home is one of the most important properties we have. Everybody tries hard to make a home of their own. The common story is, people start to deposit money from their income every month. Although there is not much they can do after paying taxes and regular bills and also the house rent. After a hard time of depositing their money, they try to buy a home or build a home of their own. This isn’t surprising at all because of the uprising house rent and other disadvantages of living in a rented house. Hence, we spend almost all of our deposits and often rely on home loans for having a home. Now let’s think about it. Shouldn’t we be more careful about the largest and most important investment of our life? Well, the insurance policy we take for safeguarding our beloved home is home insurance policy. This insurance policy is also known as Homeowners Insurance.
Why it is Necessary to Have Homeowners Insurance?
There are many reasons for which you should have homeowners insurance. Home insurance is a significant type of property insurance to secure coverage in case of property damage, repair, theft or natural disasters. Let’s talk about the necessity of having home insurance:
- It protects your property: Home insurance protects the most important and valuable asset of your property, your home. Home insurance policy covers certain kinds of damages done to your home. But there are some matters you should keep in mind. All insurance companies do not cover the same amount of damages, mostly the insurance companies cover the damages done by fire accidents or the loss because of theft. Some insurance policies also cover the damages caused by storm. Insurance companies analyze the natural calamities in some different ways. If you live in an area where natural disasters like hurricanes, earthquakes etc. are a very common type of calamity, then the insurance company should cover the damages because of these types of natural disorders. But you need to discuss this fact while you are taking the property insurance into consideration. Always remember, coverage due to flood is not under homeowners insurance.
- It makes you more eligible for having a loan: Home insurance makes you more eligible for having a bank loan. When you want to get a bank loan, the bank conducts a thorough checking over all of your properties. If you already have a solid home insurance policy for your home, the bank will consider you more eligible to have that loan compared to the people who don’t have home insurance. Homeowners insurance is very effective and useful in this way. This is simple. If you want to take a mortgage, the lender must have your house as collateral, and you would have strong collateral if you have insurance for your house. Sometimes lenders force the owner to have a home loan.
- It helps you deal the liability issues: Homeowners Insurance acts like a true friend while you need to deal with liabilities; those involving your house. It will be easier to understand if we consider a well known example. It is very common that sometimes guests come to our house and get injured. Or for an example, let’s perhaps you have a very bad neighbor. The neighbor’s son jumped over the fence into your home yard and broke his leg. What will your neighbor do? He will sue you, right? In this high time, your homeowner’s insurance will give you legal coverage. It will cover the legal fees if necessary.
Home insurance is very important for the safety of your beloved home. It is true that you might not want to become interested in insurance at first. You might not like the monthly payment to the insurance company. But you can consult an Insurance Agency before taking any decision. The safety of your home is a very important matter because a home can be the biggest investment of your life. The coverage will save you from the stress of repair costs in case crucial damages occur.