4 Reasons To Purchase Homeowners Insurance
Having insurance is a safety measure that can help you protect your finances when unforeseen circumstances arise. Most people have medical insurance and car insurance, but homeowners insurance can be just as important. For many people, a house or apartment is the most valuable item they own. That's why it only makes sense to protect that investment. Here are some reasons to purchase homeowners insurance:
1. Secure a mortgage
Homeowners insurance is not a legal requirement, but some banks require prospective homeowners to secure this type of insurance before they will grant a mortgage. Few people can pay the cost of a house or apartment completely out of pocket, which makes a mortgage necessary. Before purchasing this insurance for your home, you may want to check the coverage requirements of your lending institution to ensure that the policy you choose meets them.
2. Protect every structure on your property
Homeowners insurance covers damage to your actual home. However, it can also cover damage to other structures on your property. Many people have garages, storage sheds, and even mother-in-law cottages on their properties. A homeowners insurance policy can reimburse you for damage to these structures, thereby giving you additional peace of mind. Your insurance can also cover items stored within these structures.
3. Avoid paying out of pocket after a catastrophe
A home is a big investment, and most people make every effort to protect that investment the best they can. However, not every type of damage is foreseeable or preventable. Home invasions, burglaries, and vandalism can cause damage to the interior and exterior of your home. Additionally, flooding caused by burst pipes or weather conditions can cause significant damage. After a catastrophe, paying thousands of dollars for home repairs is likely the last thing you'll want to do. Homeowners insurance can pay for damages to your home so you can get your life back on track with minimal disruptions.
4. Get reimbursed for lodging costs during repairs
If your home is severely damaged, you may need to stay somewhere else while repairs are conducted. If you don't have family members or friends to stay with, you will likely need to check into a hotel. Lodging costs can quickly add up, especially if you have family members and pets to care for. Fortunately, many insurance policies reimburse policyholders for lodging costs during repairs. A good insurance policy can help you save money during stressful times.
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