6 Reasons You Need Homeowners Insurance
Is homeowners insurance something you need to consider? Is spending the money an absolute necessity, especially if you are renting where you live? Here are 10 very good reasons to consider buying insurance. These days, the smart thing to do is get online and use a website that allows you to get the best prices from a wide range of homeowners insurance companies. Just make sure the policies you compare to each other provide exactly the same coverage, or your comparison will not be valid.
- Lender Required Property Insurance: You just bought a home and most likely the lender will require you to have insurance. Failure to keep your insurance current leaves you in danger of having to cover the loss of a home without insurance. This would generally be a financial disaster just to replace the home. You might be open to civil legal action as well for not adhering to the terms of your mortgage. If the lender realizes you have let your insurance coverage lapse, they may insure it themselves and add the monthly cost of premiums to your monthly payment.
- Personal Possessions Insurance: You need insurance to cover the value of all your personal property in the home and on the land you own. This protects your possessions against the perils listed in the policy.
- Loss of Use Insurance: You need insurance to cover the loss of use of your home too. In the case of total loss or damage to your home that makes it temporarily unusable, who pays to stay in a hotel or rent another home?
- Third Party Personal Property Loss: Another very important reason to have complete homeowners insurance is to protect against loss or damage to the personal property of others. For example, in the case one of your daughter’s friends comes over and one of their laptops goes missing. Legally that loss is your responsibility.
- Medical Payments Insurance: This type of homeowners insurance covers payments for medical bills of anyone hurt on your land.
- PMI or PPP Insurance: This is a type of insurance that upsets many people. This is insurance required by many lenders when you buy a home. It is in addition to your regular homeowner’s policy. This insurance covers the eventuality that you are not able to make payments on your loan and/or insurance policy. These are normally required for a limited time, until the lender sees you have made payments on time.