Although most people have heard of homeowners insurance, many of them don’t understand all of the benefits to owning a policy. Homeowners insurance is a safeguard against unknown future events, and while you can’t see what tomorrow has in store, your future self will thank you for investing in your safety with homeowners insurance. Here are a few of the reasons why.
Natural Disasters
When an earthquake, tornado, or even a strong blizzard strikes your town, the damage can be devastating. Most people don’t have the disposable income necessary to cover the repairs at the time of a disaster, and paying out of pocket to reconstruct a roof after a tree falls or to re-panel your house after a tornado passes can be expensive. Since you don’t know when mother nature is going to strike, it pays to be prepared by choosing homeowners insurance in North Andover, MA, that will cover potential disasters.
Mortgage Lender Requirements
Most banks and mortgage lenders require applicants for home loans to obtain homeowners insurance. Lenders want to protect their investments, and they typically ask that you, the homeowner, carry a large enough policy to cover the amount of the mortgage. If you can’t afford insurance, then the bank or lender may supply a forced coverage policy. These policies are far more expensive than a policy you could find yourself, which is why it pays to search out coverage on your own.
Protection Against Loss
In the event of a natural or human-caused calamity in your home, homeowners insurance will cover the cost to replace and repair your belongings. For example, if a nasty house flood destroys your floors and furniture, your insurance company will cover the costs to replace them. Your coverage may also extend beyond your home to your garage, shed, and yard.
Pay Medical Bills
Though you may associate homeowners insurance purely with property damage, homeowners insurance can also cover medical costs. Your insurance policy may pay for the costs of any injuries incurred on your property. If a friend slips on the ice in front of your house, your insurance company can foot the bill. Avoid costly medical bills and potential legal disputes by investing in a policy.
Loss of Use Coverage
Accidents and natural disasters have the power to make your home uninhabitable overnight. That’s why many homeowners insurance policies include “loss of use” coverage, which covers your hotel stay or other housing costs as you wait for your home to be repaired. During a time of crisis, this coverage comes as a relief, since the last thing you want to worry about is where you’ll stay.
Robbery and Theft
If your house is broken into and your belongings are stolen, your insurance policy will cover the cost to replace them. Security systems and guard dogs can be effective protections for your home, but when those fail, it’s wise to have a plan B. This is particularly helpful if you have various valuable belongings in your home, like electronics, jewelry, or heirlooms. To make the coverage process easier in case of a robbery, create an inventory of all of your valuable possessions, including detailed descriptions of the items and estimates of their monetary value.