The importance of homeowners insurance
A home is a huge investment. In fact, for most people, a home is the largest investment they will ever make. Because of that, you want to make sure your home is protected against just about any eventuality, and to do that, you need to make sure it is insured.
Home insurance is a kind of property and casualty insurance that helps to protect you from loss should your home be damaged or destroyed by any number of causes. Homeowners policies protect against common risks such as fires, weather damage and theft, and they also provide you with a level of personal liability coverage.
Anyone who owns their own home should have homeowners insurance. If you have a mortgage, then your lender will require you to carry insurance and may even require you to put money into escrow to cover the payments. Even if you own your home outright, though, you should still carry a policy.
A homeowners policy will kick in when you have a covered event. That could be a fire, hail damage to the roof or a number of other things. You make a claim to your insurance company, which will have an adjuster evaluate the damage. Depending on the situation and your policy, you may receive a check for the damage minus your deductible, or your insurer may pay the policy benefit directly to contractors doing the work to repair or rebuild your home.
Homeowners insurance is pretty standard in what it covers and what it doesn’t. although you can choose different levels of coverage. For example, most policies don’t cover flooding from water that comes in from outside the home. Some policies may charge extra to cover you for wind damage caused by hurricanes or other major weather events.
The major benefit of insuring your home is knowing that you will be made whole if some catastrophe damages or destroys your home. An additional benefit is the personal liability coverage that the policy provides for events that may happen inside your home or somewhere else.