When you buy a home, you are making the investment of a lifetime – an investment of money, but also your valuable time and energy. Homeowner’s insurance is the way that we protect this investment from the circumstances that we can’t plan for or reasonably expect to happen in the first place.
In this article, we’ll show you 5 reasons why it’s so important that you invest in homeowner’s insurance upon buying a home.
Your Mortgage Lender Requires it
Mortgage lenders from any type of financial institution will insist that you purchase homeowner’s insurance before closing on a home. This is mandatory, as it shows that you are serious about the purchase and you are willing and able to protect it. If the house is lost in the event of a catastrophe, that’s money that your lender could be losing, too.
Homeowner’s Insurance Protects Your Property
There are a lot of bad things that can befall a home: fire, vandalism, flooding, earthquakes, theft. Sometimes, these events can cause a tremendous amount of destruction and loss – which you can’t afford to pay for out of pocket on top of your existing mortgage payments and other life expenses. Homeowner’s insurance kicks in during these times to cover the damage and restore your home without putting you in financial ruin.
If your property is deemed too unsafe to live in after an incident occurs, your insurance may even put you up into temporary lodgings while repairs are underway.
Your Possessions Can Be Protected, Too
Some homeowner’s insurance policies will protect not only the home and the land on which it resides, but also the possessions that you keep under your roof. While nothing can replace the sentimental value that you may assign to your personal belongings, your insurance policy can at least cover the financial loss if they are destroyed.
Your Liability is Secured
If someone gets hurt on your property or they experience serious damage of a personal possession on your property, you could end up on the hook for a substantial sum. Medical expenses and property damage can be very real problems in such an event, but your homeowner’s insurance can be made to protect you by paying these expenses instead of having it all come directly out of your pocket.
Peace of Mind is Worth Everything
More valuable than any financial sum, peace of mind is something that every homeowner wants. Nobody wants to lie awake at night, fearful of what may happen and being thrown into a financial disaster as a result. When you have homeowner’s insurance, you can breathe easily in knowing that you can focus on personally recovering from a disaster while your insurance company handles the rest.