For many, owning a home is a dream come true. From the freedom to paint the walls and remodel for a changing family, to the ability to build up some real equity over time, home ownership is an exciting prospect. Along with the deed and the mortgage, however, come many other considerations that people don’t think quite as much about. One of them is home insurance.
While it may not be the first thing first-time homeowners think about during the excitement of finding – and deciding to purchase – that dream house, home insurance is an essential aspect of owning a home. In addition to providing peace of mind and security, it also protects you and your precious home from the unknown. In fact, it changes the way we actually live in a number of ways.
8 Ways Home Insurance Improves the Way We Live
A home is one of the biggest investments you’ll ever make, and having home insurance changes the way you live in and relate to it.
1. It streamlines the loan process
For shoppers looking for a home loan, home insurance is a must-have. Because lenders give out money trusting that they’ll be able to reclaim the home if the loan isn’t paid, anyone who doesn’t have home insurance stands out as a liability, By purchasing a policy that protects the home in the event of damage or disaster, buyers can secure better loans and make the borrowing process easier.
2. It protects us from lawsuits
While home insurance is there to ensure you can fix your roof if a winter storm knocks a tree onto it, it’s also in place to ensure that you can cover the costs of hospital bills and injuries for anyone who gets injured at your home. With a good home insurance policy, you can still be sued, but your insurance will react on your behalf if you are. In this unfortunate instance, the liability coverage of your home insurance policy will respond to any legal action someone takes against you.
3. It gives you peace of mind
Every homeowner’s worst nightmare is losing their home to a fire or natural disaster. If this happens, though, home insurance will be there to cover it. By insuring your home against damage or accident, home insurance helps you rest easy knowing you can get back on your feet if anything unexpected should happen.
4. Home insurance covers your possessions
If your home is broken into and robbed, home insurance will cover the cost of replacing or repairing your lost items. This peace of mind makes it easier to go away and trust that the home is safe and secure in your absence. It also helps homeowners know that, even if the worst takes place, their items will be safe and secure.
5. Home insurance pays for medical bills
If your child has a friend over, and that friend falls down the stairs, and needs stitches, your home insurance policy will cover medical bills for the child. While it’s true that home insurance will help protect you from lawsuits, it will also cover medical expenses in cases of injury where nobody wants to sue.
6. Home insurance insures your home’s equity
Your home’s equity is likely your largest asset, and your insurance policy protects it. This way, if something happens to your home and it is damaged or destroyed, you can trust that you won’t have to start over again from point A.
7. It helps protect against natural disasters
While nothing can prevent a world-record snowfall from damaging your roof or causing your basement to flood, a home insurance policy can help protect you from having to accommodate the financial burden of those things. Depending on where you live, you can purchase home insurance policies that cover you in the event of earthquakes, overland water, and other natural disasters.
8. It can help cover displacement costs
Say a massive snowstorm rips through your neighborhood. While nobody is hurt, the snow causes a large tree to fall on your roof, destroying it. While your roof is repaired, your home is uninhabitable. If you have a good insurance policy, it can help cover the costs of displacement, by paying for you to stay in a hotel, while your home is restored to a habitable status.
The Many Benefits of Home Insurance
While home insurance is a good way to protect the equity in your home, it’s also a smart way to protect your safety, sanity, and peace of mind. By covering your personal and real estate interests, home insurance provides peace of mind and security for everyone who has it.