Most likely your home is your most valuable financial asset. That is true whether you own your home outright or even if you have a mortgage. One of the reasons you bought your home was for stability and future financial security.
Sadly, nothing in life is as secure as we would like. Your home may be your greatest asset but potentially it is also your greatest liability.
That is why you need to give home insurance a major think. In this article, you will read about 7 significant benefits of having homeowners insurance. If you don’t have insurance right now then this article is going to create a nagging thought in your mind which says ‘Why not?’
- Protect Your Investment
How long did it take you to save for the deposit on your house? That figure varies all over the world but in England, it can take as long as 10 years.
Imagine how you would feel if, through some unforeseen event, you lost your entire home? Perhaps fire or some natural disaster has caused the devastation of your home. You would be beyond consoling but not only that, if you were not insured, you would likely be financially ruined.
- Peace of Mind
No one knows the future and even though we may rationalize something bad is not going to happen, the simple truth is it could. That bad thing may not be what we expect.
It could involve part of the grounds or other buildings not directly part of the house. The resultant cost could be financially crippling but also essential for the property. Unforeseen disasters could also extend to valuable items within the home.
The benefits of having homeowners insurance that includes the full property as well as what is inside your home will give you peace of mind. As your wealth and the value of what is in your home grows having that peace of mind is vital.
- Accidents Happen
Everyone is a victim of an accident from time to time. The big problem is when that accident occurs on your property and someone wants to take legal action against you. If you are not insured you are very vulnerable financially.
It does not have to be that way. One of the benefits of homeowners insurance is that it can cover any liability incurred through accidents. If you work from home or people come to your home because of your work, then you need to give this special consideration.
- Out of Pocket Expenses
There is any number of things that could happen in your home that cause you to make some form of out of pocket payment. For example, someone working on your home may cause damage that needs to be repaired.
While their own insurance covers that damage and your home will be repaired, it could be that you have to temporarily move out at a cost to yourself.
Homeowners insurance can save you from being caught out with expenses like this.
- Good Financial Planning
To some degree, homeowners insurance can be as expensive or as cheap as you want it to be. Obviously, the cheaper your premium the less you will receive but that doesn’t automatically mean you should only purchase the highest premium.
As part of good financial planning, you need to consider the risks and the level of costs that you can absorb in the event of a disaster. This needs to be carefully assessed and discussed with professional advice. Far better to plan your premium even if it is cheaper than to do nothing at all.
- What Goes Up Must Come Down
This is not the stock market. It is anything that is in the sky as debris or anything else that could come down and impact your house. There is a lot more going on above us than ever before.
With increased technology in the sky, there is an increased risk that some of that may fall on your home. Of course, bad weather is another major source of bringing things down out of the sky. This is not to scare you but to highlight how comprehensive insurance can be.
There are things that can happen to the home that you may not even have thought of. You don’t have to, that is what your insurance is for.
- A Break-in Need Not Break the Bank
In the US in 2017, there were around 1.4 million burglaries. It is upsetting enough to think that someone would break into your home and steal from you. However, your pain will multiply tenfold when you lose something precious from within the home with no hope of recovery or any other financial recompense.
Once again, if you are insured it can cover your loss in the event someone breaks in and steals from you. A break-in may also damage some parts of your property such as a door or windows. These costs are also covered by insurance.
Benefits of Having Homeowners Insurance – Final Word
In this article, you have read about 7 benefits of having homeowners insurance. Unless you are growing money on trees you need an insurance policy. in many ways, it is helpful to stop thinking of insurance as an option and start thinking of it as necessary.
Another consideration is the use of a homeowners insurance lawyer. This is a professional who will help hold insurance companies to their policy. You always need to do your homework on choosing an insurance provider but you can take comfort that the industry is well regulated.
You can read more practical articles on this site that will help you with your home. Check out this article on ‘common window problems’ and how you know when to replace them.