6 Reasons To Get Homeowners Insurance
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A home is more than 4 walls, it should be about securing your property in the event of theft or damage.

6 Reasons To Get Homeowners Insurance

6 Reasons To Get Homeowners Insurance
6 Reasons To Get Homeowners Insurance
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When you buy a new home, no matter how large or small it may be, or how much money you spend on it, you are going to want to look after it. It is a major investment and a big commitment, and getting homeowners' insurance is something that can help you when it comes to ensuring that the building and everything in it are protected as much as possible. Some mortgages will insist that you have this insurance; that is how important it is. So why would you need it, and what are the main reasons for getting it?

Natural Disasters

The natural world is an unpredictable and sometimes dangerous thing, and the weather is a big part of what makes it so hard to predict. Tornadoes, floods, fire, earthquakes, and even heavy snowfall can all play their part in damaging your property. Although not all homeowner insurance policies will protect against these natural disasters, others will, so it is important to check the fine print before choosing your policy. Think about where you live and the specific problems that the area has. For example, does heavy rainfall occur causing water damage and require water cleanup services, or perhaps you live in an area were tornadoes often pass through.

Theft

No matter how careful you are, thieves can still want to target your home. When they break in, they can cause thousands of dollars of damage, and they can take some extremely precious, and in many cases, expensive items. The right homeowners' insurance policy will protect against the damages and the thefts themselves. You might be able to claim for the money or replacement goods. It will depend on how easy they are to replace as some items are unique and may be lost for good. If that is the case, it's a good idea to insure them separately for added security.

Liability

It isn't just property and possessions that can be damaged; people can be injured on your property too. Homeowners' insurance can limit your liability when it comes to injuries suffered by third parties. This kind of coverage will often pay for medical bills and legal fees and potentially replace damaged goods. An example of this would be if someone fell on your property and broke an ankle but also broke their cellphone. Your insurance may be able to help with the ankle and the phone, fixing one and replacing the other.

Mortgage

If you are buying a house with a mortgage, or perhaps you are remortgaging to obtain some of the equity you have built up, then it is often the case that many mortgage lenders require you to have at least some level of homeowners' insurance. Without evidence of such, they may not lend the money, and you may not be able to purchase the property. The reason for this requirement is simple; the mortgage lender needs to know that they will be able to recoup the money they have lent for the purchase of the property should you not be able to keep up with repayments, or should anything disastrous happen to the house or apartment.

Without insurance, the lender could lose a lot of money if the house were to burn down, or not be able to be lived in for any other reason. The insurance is in place to allow them to get their money back in the worst case scenario. 

Peace Of Mind

There will probably be times in life when you have less money than at other times. It is during these times that you might even think about canceling your homeowners' insurance; after all, it feels as though you are paying out for nothing at all since you haven't ever had to claim on it. However, this would be a bad idea. The peace of mind you get from having the insurance is worth every cent that you are paying for it, and the idea of not having it and then needing to claim for something (or everything) would be a terrible thing.

Protect Equity

The equity in your home is the value of the property over and above what is left to pay on the mortgage. It is essentially the difference between what the house is worth, and what you owe on it. The more you do to your home in terms of renovations and decoration or even extensions, the more equity you will build up. Should something happen to your home, you can protect that equity and ensure that you don't have to start all over again from nothing.

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