Buying a home is a landmark in every person’s life. So many of us keep gathering finances till we finally have enough to buy our dream home. After spending a great deal of time going house hunting, getting loan approval, negotiating and sealing a deal; wouldn’t it be highly disheartening if your dream home got destroyed because of a natural disaster or fell prey to burglary?
No matter how hard you try; you cannot deny or eradicate the chances of damage due to uncertain factors. Natural disasters like cyclones, earthquakes, storms, floods etc cannot be predicted. There can be situations wherein someone runs over your fence while parking their vehicle, you are on a vacation and come home to find your house run down by the fire, your house experiences a theft and so on. Though these issues are not very likely to happen if you live in a safe neighbourhood, you can never really be sure.
Sounds daunting, doesn’t it? Fret not; home insurance has you covered!
Home insurance offers you the protection and peace you need. Once you avail of it; you can rest assured that no matter what situation you are in your house, damage costs will always be covered.
Statistics state that at least 85% of homeowners possess home insurance. There are several options available in the market today when it comes to home insurance policies. To find the most relevant one for you, it is recommended that you procure the assistance of a real estate broker or a real estate brokerage firm as they are thoroughly acquainted with the ins and outs of the home buying process, of which, getting insurance is a notable part.
There are several benefits associated with home insurance. We shall talk about the 5 most prominent ones here.
Table of Contents
1] Protection of the main and detached structure
In case you face a fire or any other natural disaster, the loss incurred is going to be substantial. To save you from such sudden huge financial costs, home insurance exists. The impetus on which homeowners’ insurance policies lie is protecting your main residence of inhabitation. You can either go for 100% insurance of the main structure or choose insurance of up to 80%-90%.
Insurance policies are not constrained solely to main structures. They also regard the supplementary areas of your house like the shed, garage deck and fence. Damage to detached structures is also covered by insurance but the coverage limit is usually minimal; about 10%. However, you have complete freedom to customize the policy for you and increase the coverage.
2] Covers home content
Home insurance doesn’t merely protect the structure of the house but can also be used to cover the costs of internal constituents. The insurance can be extended and you can add on coverage for your expensive belongings such as appliances, furniture etc. Some disasters can damage these as well and you can then seek partial or complete compensation. Extended insurance can also prove beneficial in scenarios of burglary or theft.
3] Liability coverage
Liability coverage is a postulate of home insurance coverage which is never really paid heed to or talked about. You being the owner of your house could be held responsible in case a guest or any individual gets injured at your premises. If you are struck by claims that arise out of accidents of others on your property and are asked to compensate for the loss; the capital you will have to spend can be nerve-wracking. You will have to spend quite the fortune paying the bills for treatments. This is where insurance can serve as your shield.
4] Loss of use insurance
Insuring a home does way more than simply repairing damaged shingles! Post a disaster when your house is being mended, you will most likely be compelled to move out while the work is being carried out. In this circumstance, you will have to spend significantly on the staying expense, food and commute. If you have an insurance policy; the loss of use component from the insurance will pay these costs for you.
Some individuals might consider home insurance an unnecessary expense which can be avoided. You might think so too, and it is pretty natural. Why spend on something that has a low chance of occurrence. But remember if damage does happen, the stakes involved are too high. You might go entirely bankrupt if not well-prepared. Therefore, taking into account the impact that an unforeseen event can cause and the numerous benefits that home insurance offers; the investment you make is outweighed. Home insurance is the perfect imitation of the quote “Prevention is better than cure”.
All in all; deciding whether you need an insurance policy is up to you and now that you have gone through the benefits, you can make an informed choice. Home insurance can provide you with the relief that you will always be financially protected when it comes to your house. You can sit back and relax as the protection of your home is no more your responsibility. Your home is a lifetime asset and protecting it is vital; so, outsource the task and live on in peace!