Also commonly called homeowner’s insurance, home insurance is a type of property insurance that covers losses and damages to an individual’s home. The insurance covers accidents to assets in the house as well, such as furniture and appliances. Home insurance also provides liability coverage for accidents that may occur in the home. Homeowner’s insurance also provides for disasters.
In actuality, home insurance offers two classes of protection against unforeseen events. First is damage to property (which includes losses caused by fire, vandalism, storm, etc.). The second is the liability for any injuries or losses caused by the homeowner or in the home; it means that should a child drown in a pool, the insurance will cover the medical bills.
While you are in no way obligated to have your home insured, doing so might prove beneficial. No one hopes for accidents to happen, but we cannot deny that they do happen even despite the many preventive measures that we take. A home is an asset. For some, it may just be the greatest asset that they own; loss or damage to one’s home will, without doubt, destabilize a person’s life and may put the individual and his/her family at financial risk. It is for this reason that homeowners are advised to have their homes insured.
Home insurance applies to renters as well. In the case of renters, seeing as they do not own the building, only their belongings are protected. Renters should note that the insurance of the homeowner does not extend to the renters and, in the event of an accident, will lose their property. The following paragraphs discuss why homeowners and renters should care for home insurance.
Home insurance is often a requirement for mortgages on homes.
Home Insurance Protects Your Home and Belongings from Loss
In the event that your home suffers damage from storm, fire, vandals, or similar accidents, home insurance prevents a total loss of property. The insurance policy covers the building itself, as well as other personal effects. So while you can never get back your lost property, you will be compensated in an amount that will replace whatever was lost.
Home insurance will cover the homeowner, should a lawsuit arise as a result of injuries sustained while in the home.
Temporary Housing in the Event of a Disaster
Should your home be affected by fire or any other disaster, home insurance could cover the temporal cost of living (hotel, food and beverage, laundry) while your home is under repairs.
There is perhaps no better feeling than the peace that comes with the assurance of security. With home insurance, you can rest easy knowing that should an accident occur, your home, and by extension, the future is secured.
“It is better to be safe than it is to be sorry,” goes the maxim. Still, despite our best efforts, we cannot ensure absolute safety for our homes; this is the reason to insure your home.