When you first look at a mortgage price, it may not seem too expensive. But soon, additional costs start piling up – property taxes, utility bills, home insurance, and more. But do you really need to pay for home insurance, or can you just save your money?If you’re going to own a home, you need to have home insurance protecting you. Read on to learn about some of the benefits of home insurance and how it can actually save you money in the long run.
One of the biggest reasons many of us may have home insurance is that our mortgage lenders require it. When you mortgage your home, the bank technically owns your home to begin with. You buy it from them slowly over the course of your loan, paying them interest along the way.
The bank wants to make sure their investment is protected during the life of your loan. Home insurance ensures that if your home gets destroyed, they won’t get stuck holding the bill. Many mortgage companies require that you maintain insurance on your home throughout the life of your loan.
It Protects Your Belongings
Most of us think about homeowner’s insurance as covering only the structure of our homes. And while it certainly does do that, it also protects the things inside your home. Home insurance can be a great way to cover your more valuable possessions without having to get each of them their own separate insurance policies.
If your furniture, electronics, or other valuables get stolen or destroyed, your home insurance could reimburse you for that loss. There may be some limits on what they will reimburse when it comes to jewelry or other expensive items. Your home insurance policy will also not cover any items used in a home-based business.
It Covers Out Buildings
Your home insurance can also help to cover separate buildings on your property in case of damage or destruction. Your home may come through a hurricane or tornado fine, but a tree may fall on your shed. Or your pool house or greenhouse could catch on fire, leaving your house undamaged, but destroying that structure.
Most home insurance policies cover all buildings on the insured property. This can save you thousands in costs to rebuild or replace a structure after a natural disaster or fire. However, it’s a good idea to check with your home insurer to make sure your policy covers outbuildings in addition to the primary home structure.
It Reduces Your Costs for Natural Disaster Damage
No one likes to think about the possibility of a natural disaster destroying their home. But tornados, fires, floods, and hurricanes do happen, and you need to be prepared for them. Without home insurance, you could be left with nothing, years of equity building, and mortgage payments, gone in a flash.
Your home insurance can help reduce your costs for everything from making repairs to rebuilding. You can use your insurance settlement to buy or build a new home if yours was destroyed entirely. And expensive projects like replacing a roof or rebuilding part of a home damaged by fire can be a lot more manageable with help from your insurance policy.
It Helps You Recover from Losses
If your home is destroyed by a fire or natural disaster, you’ll be left reeling. Everything you had is gone, and you’re left trying to figure out how to put your life back together. The last thing you want to deal with during that time is financial questions.
Home insurance can give you the resources you need to get back on your feet after losing some or all of your home and possessions. You can get the money you need to repair or replace what was lost. This gives you more space to figure out what your recovery process will look like, rather than worrying about how you’re going to pay for it.
It Protects You from Liability
Most of us don’t think about it, but your home can be a big liability risk. If a delivery person slips and falls on your icy front steps, they could hold you liable for the injuries they sustained. These lawsuits can get expensive fast, and you don’t want to be left unprotected.
Your home insurance serves as a sort of liability insurance as well as protecting your possessions. If you get sued for liability, your insurance can help to cover your legal fees and settlement costs. It can even help cover repair costs related to the incident that caused the lawsuit.
It Provides Additional Perks
Aside from protecting your home and belongings, having home insurance can also provide you with some other benefits. For one thing, membership with an insurance company could get you discounts with other services. You may be able to get routine maintenance and inspections done at a discount thanks to your insurance policy.
You may also be able to save on other insurance policies you maintain. Many insurance companies offer bundle and save deals where you can get discounts on your premiums for having multiple policies with that company. This could even add up to you getting a free insurance policy if these discounts add up to the cost of premiums for another policy.
Discover the Benefits of Home Insurance
Having home insurance can help you rest easier in your house. If your home is damaged or destroyed, your insurance policy can help you cover the cost of repairing or replacing what was destroyed. You can also get protection from liability lawsuits and even earn discounts from your insurance company when you protect your home.
If you’d like to find the perfect house for you, check out the rest of our site at Gray Point Homes. We believe that happiness starts at home, and we’re here to help you find your happy place. Fill out the form below today and take the first step forward into an amazing new chapter of your life.