Must I Buy Homeowners Insurance?
Unless you are able to buy your new home outright without a bank loan, the lender is likely to require you to buy a homeowners policy in order to protect themselves in case the property gets damaged before the buyer (you) have fully paid them back. In instances of very small loans for extreme “fixer-uppers” or houses that were sold for back taxes, there might be an exception, but that is fairly unusual.
Homeowners insurers will include four major components to the policy: main dwelling coverage, personal property protection, liability cover, and additional living expenses. There are other components too that you can add on, including detached structure coverage, guest medical cover, and extra property protection for expensive items like jewelry, electronics, collectors’ items, and more.
5 Top Benefits Of Buying Homeowners Insurance
The bank may in effect require you buy a policy to protect your new home, but in fact, there are many good reasons why you should want to buy one anyway.
There are far more good reasons to invest in a home insurance policy than just “keeping it legal”. Here are the top five benefits:
1. Peace Of Mind!
It’s hard to put a price tag on peace of mind. All the other benefits of homeowners insurance, in fact, could be summed up into this one. Who wants to constantly worry about what would happen “if”, knowing that they would lose all their investment in their home and might actually end up underwater with no way to pay?
2. Natural Disasters
Hurricane season is an annual ritual here in Florida, and the threat to Florida homes is real. You never know when a hurricane, major tropical storm, earthquake, or even a severe thunderstorm might cause major damage to your home. It’s best to be protected, therefore, at all times.
3. Home Fires
One of the most common causes of total home loss is a home fire. Most home insurers cover fires in full, whether you lose the whole main dwelling or only part of it. The home’s contents will also be protected, up to the limits of the policy, if they burn up in a fire. And you can even get loss of use coverage to pay for the extra costs of living somewhere else while your home is being repaired or rebuilt.
4. Theft & Vandalism
Most policies will protect your home’s valuables against the possibility of theft and/or vandalism. Personal property protection can cover you for tens of thousands of dollars in potential loss.
5. Liability Protection
If an accident, a dog bite, or another injury occurs on your premises, you don’t want to be personally liable for gigantic medical bills. Homeowners insurance includes limited liability protection – usually $100,000 or more, for this very purpose.
If you are asking why you should buy a home insurance policy, the above five reasons are a good start to an answer. To learn additional benefits of insuring your home, contact Flagler County Insurance Agency today for a free consultation and a free quote!