The Importance of Home Insurance
Buying a home is not an impulse buy for most people. Purchasing a home may be an American dream, but there are any numbers of factors to consider first. These include income, debts and what size of home is needed. There is also making certain the person can actually afford not only to purchase a home, but also to keep it up with taxes, maintenance and insurance.
A Must With a Mortgage
Homeowners, especially those with mortgages, are required to obtain and keep appropriate insurance on the home owned. Just as health insurance takes some of sting away from the cost of medical care, so home insurance provides a remedy when faced with major home destruction such as that caused by fire, flood, hail, tornadoes or other storms.
For example, a driver under the influence may lose control of his vehicle while driving by your home. The car may end up buried in the side of your home, taking out a closet, a bathroom and part of the dining room. Without insurance, the home owner would have such a huge repair bill that the only option would be to go deeply in debt.
Insure What is Inside
Remember that when your home suffers damage, it isn’t only the physical structure that may be damaged. Your home is filled with furniture, books, appliances, computers, clothes, important papers, pictures and any number of items. Consider replacement value of what is inside your home as well as the building itself when buying insurance.
Get Adequate Coverage
When looking for home insurance, purchase a policy that adequately covers damage to your home and property. Ask about the deductible. A deductible expense is what you pay out-of-pocket before insurance kicks in. The larger the deductible on your policy the more you’ll have to pay before you receive any financial help from your home insurance policy. Make sure the deductible is something you can handle without going into debt, because the chances are high that, at some point, you will need to use that insurance policy.
Protect From Liability
Liability is another important reason to have adequate home insurance. If a friend is helping your husband do a bit of repair work on the roof, falls and injures himself, you want coverage to pay for medical care. If your daughter and her friend are playing and running around the house when the friend stumbles over a toy and is injured, you want protection for an irate parent who sues for the cost of medical treatment.
Research Before Buying
While home insurance is important, it is also important not to buy the first policy you look at. House insurance policies vary by state, by company, by particular policy and by your own requirements for coverage. Talk to agents, check out websites, list questions and get answers before signing on with a company for house insurance coverage. Ask about discounts for which you might be eligible.
Home insurance coverage is important not only to protect the home and property, but also for your peace of mind.