Being a homeowner is a great achievement and offers a sense of security for you and your family. The process of choosing and buying a home in which to live and grow is exciting, and something which must be carefully considered due to the substantial financial investment and commitment. As we all know, this is not a step which comes cheap. Your home is likely to be the most expensive thing you ever buy.
For this reason, many financial advisors, along with experts from roofing companies to builders, will recommend taking out homeowners insurance. This small cost now could save you serious cash down the line, and ensure that any repairs or emergencies are attended to quickly. So, what are the top benefits of homeowners insurance, and how can it prove a valuable investment?
It may not be a choice
Depending on your mortgage, homeowners insurance may be a requirement as opposed to a choice. Some lenders insist that you take out a policy before agreeing to fund your purchase or refinance. This is because they see their financial input as an investment, and they want to ensure that this is adequately covered in the event of a fire or another incident. If this is the case, it is advised that you take the time to find your own policy, as those purchased by your lender can prove more expensive.
Protect against liability
Homeowners insurance also protects you from being liable if someone has an accident on your property. This means you can sleep easy knowing that if your nosy neighbor trips on your garden hose and breaks his ankle, you will be entirely covered and protected.
Some people see the cost of homeowners insurance as an unnecessary expense, but this attitude changes rapidly when it is needed. Most policies will also include hazard insurance, and this can be invaluable in protecting you against accidental destruction or damage to your property or its contents.
Typical coverage protects against fire, vandalism, theft, and storms. It will usually also cover the cash value of any damage caused or the replacement value. The latter will enable you to replace whatever has been lost, while the cash value only pays what the item is worth. For example, items such as cars and televisions depreciate over time, and so you will receive less than you originally paid.
Additionally, some homeowners policies will also provide a level of legal protection in the event of a lawsuit being filed against you or your home, such as in the cases of liability we discussed earlier. This can be the difference between being able to hire a top-quality lawyer and having to make do without and can give you a huge head start in the event of legal issues arising.
Homeowners insurance is an extra which may seem unnecessary in the short term but should be considered a valuable long-term investment to ensure the safety of your home.