8 Reasons Every Family Should Have Home Insurance
Owning a home is one of the greatest achievements in life. However, if you always want your beautiful house to be a place that you and your family can call “home,” it’s essential that you grant yourself peace of mind and take out a home insurance policy. Even when money is tight, the small amount you pay each month for home insurance can save you hundreds or even thousands in the long term. Consider these eight reasons why every family should have home insurance:
- Protect your family in the event of major disaster: A house fire or a natural disaster is a devastating, traumatic experience. If your home becomes inhabitable as a result, you have a few more equally traumatic experiences with which to deal: finding a new place to live and affording a new place to live. With a home insurance policy, you won’t have to worry about where you’re going to live following a disaster. Insurance will allocate funds for the repair of your home or for the construction or purchase of a new home if necessary. Depending on your coverage, you could also get temporary lodgings costs covered in the meantime, which will save you thousands on hotel or apartment costs alone.
- Even minor damage can prove costly: Luckily, most families won’t have to suffer through a house fire or a natural disaster that destroys their home. However, minor damage is a much more common occurrence than you may think. Vandalism, a minor wind storm, a small electrical fire or a burst water pipe can inflict relatively minor damage on your home. But try to get that damage fixed and you could be looking at a bill totaling hundreds or even thousands of dollars. Most families don’t have that huge sum to spare all at once. Rely on home insurance for times when unexpected damage occurs to your home so you can get repairs taken care of quickly and with minimum stress.
- Get money back on stolen items: Not everyone is aware of this advantage, but home insurance covers theft, too. If, in the unfortunate event of a home break in, thieves get away with your belongings, you can at least get the cost of those belongings back in order to replace them. Opt not to have home insurance and you’ll have to come up with the money to replace items on your own. When you consider the types of items thieves tend to target, items like expensive electronics, you could be looking at thousands of dollars in replacement costs. While dealing with a home invasion is stressful, at least you’ll have one less worry during the process and can return to a normal routine as quickly as possible following the incident.
- Protection against costs associated with injury: If anyone in your family or a guest injures him or herself accidentally on your property, medical bills can prove unwieldy. For example, tripping down an icy step or a root in the ground can cause someone to break a bone. If the person who injured him or herself weren’t in your family, you could face a lawsuit in order to make sure you cover that injured person’s medical bills. Even if you want to avoid a lawsuit, you might not otherwise be able to get your hands on the cash necessary to take care of the bills. With home insurance, the insurance company will assess the situation and cover the medical bills for you.
- Coverage for damage to other properties: Another advantage of the typical home insurance policy that you might not have known about is coverage in the event of damage to a neighboring property, so as long as someone in your family or otherwise included in your policy caused the damage. For example, if your kids are playing a ball game and the ball goes into the neighbor’s yard, cracking a window or hitting the neighbor and breaking his or her nose, home insurance may cover the damage and medical costs in order to save you from a potential lawsuit.
- Improves loan eligibility: In some areas, taking a mortgage or a line of equity out on your home requires that you have home insurance. In other cases, proof of home insurance at least improves your eligibility for the loan. This is because the bank, which will take a lien out on your home, wants to be assured that the home will be covered in the event of unforeseen accidents and that their lien will not lose value.
- Flexible coverage: If you’re on a tight budget and don’t think you can afford home insurance, think again. Most home insurance policies offer flexible coverage. For example, if hurricanes happen in your area about once in a blue moon, you may not want to pay an additional amount each month in order to cover hurricane damage. At the same time, even if hurricanes do occur in your area, but you simply want to gamble on the fact that one won’t strike your home, you can still opt out of the undesired coverage. Lower or raise your deductible and maximum coverage and you’ll also see an adjustment in your upfront monthly costs.
- Provides discount opportunities: Some insurance providers offer discounts on multiple insurance purchases. For example, if you buy car insurance, health insurance and home insurance from the same place, you could save on a bundle package. Since purchasing home insurance could make other insurance policies you need, such as car insurance, less expensive and since there are so many other reasons to have that peace of mind that home insurance provides, you may as well look into possible discounts.