Whether you are renting or buying a home, no matter the size, having insurance to protect you is important.
In most cases, having insurance on the home that you are buying, or renting is a requirement. Another reason for insurance is to protect your place from:
- Vandalism
- Tornadoes
- Flooding
- Hurricanes and wind damage
- Earthquakes
- Thunderstorms
- Fire or lightning
- Hail
- Smoke
- Riot or civil commotion
- Theft
- Explosion
- Damage from vehicles
Insurance will help you cover the cost of repairing the damage that happens from this.
As much as we may not want to think about this, someone may get hurt while on your property. It could be something like someone slipping and falling on the icy steps in front of your door. They end up hurting their back enough to go to the hospital. They may hold you responsible for their bills.
The insurance covers your personal property as well. Policies can include furniture, clothes, electronics, collectibles, art, and jewelry. Don’t assume that everything is covered in your policy. Be sure to read and understand the policy covers. Your policy will help you cover the costs of replacing your belongings. Your valuables don’t have to be in your home. They could be in your car or storage place and still be covered by the policy.
Having an insurance policy will help you if a natural disaster ruins your house or it is otherwise unlivable. In cases like this, your insurance will help you cover the cost of a hotel until they repair your house. Though, sometimes, it might come down to you buying a new place.
Having a home means that you have equity, which is the value your property has minus the mortgage and liabilities. Any renovations or upgrades increase the equity of your home. So, if something happens to your home, your insurance makes it so that you don’t have to build up your equity again.
Getting home insurance is easier than one might think. Having insurance will give one less thing to worry about.
When looking at the home insurance coverage, know that flood damage and earthquake damage are two different policies on top of the main policy you get. Having one or both policies is a good idea if you live in an area that is prone to floods and/or earthquakes.
Things to consider for what your insurance company doesn’t cover:
- Mold
- Maintenance damage due to worn-out plumbing and electrical wiring
- Sewer backup
Policies state the damage has to be “sudden and accidental,” for it to be covered. This means that damage from a slow leak or an old roof caves in, then it won't be covered.
If you have a home-based business where you have customers coming to your home, you will need a separate commercial policy to cover it.
Check out the insurance company that you’re looking at buying a policy from. You will want to make sure the company has an excellent reputation, so you are getting the best deal for your money. This will help you save money in the long run.
You can check it out here for more information.