Irrespective of whether you have settled your mortgage or purchasing a new house, you may have often wondered whether you really need to purchase home insurance or not. Your home is likely to be the most precious assets that you acquire during your lifetime. You and your investment can be protected by purchasing homeowners insurance in various ways.
Here are some of the most important reasons why you should contemplate purchasing homeowners insurance
Home insurance may be needed
When you have taken a mortgage, the lender may ask you to purchase homeowners insurance as a requirement. Prior to financing for the mortgage, your lender may usually ask you to give evidence that your house has been insured properly. The reason is that the mortgage company wants to be certain that there is protection for the financial investment it makes in your house in case your house gets damaged due to a fire or some other risks
But, when you have not availed homeownerâs insurance coverage, your lender could purchase coverage and then charge you for its cost. However, you should remember that the policy procured by your mortgage company is likely to be costlier than what you could have bought yourself and may provide limited coverage.
Protects not just your home but can do much more
Though standard homeownersâ coverage helps to protect your home, the scope of its coverage can go beyond your home’s physical structure. It can extend to your personal belongings that you have kept in the backyard of your home or medical bills when a guest sustains injury. While staying in your house, homeownerâs coverage may also include the following:
Guests: When a visitor gets accidentally injured while staying in your house, the guest medical protection clause of your policy can help you to pay their medical bills.
You as well as your family: When any of your family members or you are found liable for damaging the property of somebody accidentally or injuring somebody, coverage can be helpful for paying medical bills, legal fees, and related repair expenses.
Personal property: Such coverage can be helpful to pay for replacing specific belongings such electronics and furniture, which are damaged or robbed y a loss covered in the clause.
Your dwelling: When your house and other attached structures like a garage or decks get damaged by a peril that is covered, this policy can be helpful to pay repair costs.