Is it that necessary to insure my home? This is one of the common questions that homeowners find themselves asking. A home is obviously a key investment, and you want to do your best to protect that investment and get the best out of it. This is where homeowners insurance comes in. Well, shelling out some money every month for something intangible may look unviable on paper and just another burden, but there are an array of benefits that you stand to gain. Here are a few important facts of homeowners insurance.
1. You can start afresh
If disaster strikes your home but you don’t have coverage, you might have to spend thousands in repairs or replacement as well as rental charges (if you rent an apartment as the repair is done). Homeowners insurance can pay for damage and destruction of your belongings and property. In addition, it can help you recoup damages in the event someone breaks into your home and makes away with your belongings. That way, you’re able to rebuild your life and lead a normal life like before.
2. Requirement by lenders
Most lenders require that a homeowner obtains adequate insurance to be eligible for loans such as mortgages. The reason is because they typically put up to 80 percent of a home’s value in cash, therefore making it necessary for the borrower to insure the investment.
3. Peace of mind
One of the key importance of homeowners insurance is that it gives one peace of mind and reduces worry. When you have an active policy, you can go on with your daily activities rest assured that you’re equipped to go through a crisis and emerge strong. Yes, it won’t prevent fire, floods or other random acts of nature from occurring but it does place an important safety net between the homeowner and any catastrophe.
4. Largest investment
Your home is probably the biggest investment you’ll ever make, and it’s different from a car because it gains value over time. The property market might have been rather unstable over the last few years, with prices going up and down due to times of recession and you’re probably worried about the value of your property. But recent news suggests that the real estate market is getting back on its feet.
If viewed from a long-term perspective, owning a home can be the best financial investment one can make to ensure their security in the long-run. Having an insurance cover to protect this investment should therefore be a priority for any homeowner.