fbpx
Insurance agent showing insurance policy and holding a home on his hand

Is Homeowners Insurance Worth It?

So, you just bought a new home, and everything is brand new. What can go wrong, right?

Or,

You know most of the DIY stuff and wonder if you really need a contingency plan.

As a matter of fact, several things can go wrong. It does not matter whether it is a brand new home or how good you are at handling situations on your own. Look at it this way; homeowners insurance is all about giving your investment long term protection.

This protection is not just about fixing plumbing issues but damages caused on a massive scale due to uncontrollable factors. That said – let us dive right in to find out if homeowners insurance is really worth it.

What is a Homeowners Insurance

Homeowners insurance is a coverage policy that not only protects your home but also your valuable possessions such as appliances, furniture, and other fixtures within the property. Moreover, you can add liability coverage to your homeowners’ insurance policy, which will protect you and your family members from any injuries.

You can even get coverage for structural damage to your property and loss-of-use in case an appliance or asset breaks down. Did you know you can even add protection against flood and earthquake damages to your homeowners’ insurance policy? 

While you are under no obligation by law to get homeowners insurance, there are some exceptions. For example, if you buy a house on a mortgage, the lender may purchase an insurance policy on your property and charge you for it.

4 Consequences of Having No Homeowners Insurance

Here are some of the drawbacks of not having homeowners insurance.

1.      No Protection

Not having homeowners insurance leaves your home without protection against damages and losses. In case an appliance breaks down or the plumbing malfunctions, you will have to bear the cost of repair. Moreover, if you lose something or there is a robbery in your home, you will have to pay out of your own pocket for the new items.

2.      It Is a Trap

Do not fall for the classic trap of getting a financial boost by not purchasing homeowners insurance. You may save some now but will have to splash 100% cash later for any damages. This out-of-pocket cost multiplies ten-folds if you live in an area with severe climatic conditions such as hails, winds, storms, hurricanes, and tornados.

3.      No Liability Protection

Did you know that a homeowner’s insurance policy can cover your visitors against any injury on your property? Even if a trespasser gets hurt on your property, you will still be liable to pay for their injuries. Homeowners can cover all of these expenses and even pay the medical bills and legal defense fees etc.

4.      Not Eligible for Home Financing

If you are a first time home buyer, you may not be able to secure financing. Most lenders would ask you to buy home insurance before offering you a mortgage.

4 Reasons Why Homeowners Insurance Is Really Worth It

Here are four benefits of why you must really get homeowners insurance.

1.      Protection for Your Home and Assets

Whether it is a minor plumbing fault or severe damage to your property due to fire, flooding, or hurricane, homeowners will cover it for you. By paying an economical monthly premium, you can save thousands on expensive home repairs.

You can also include your appliances, furniture, gadgets, and other equipment in your homeowners insurance plan. This will even pay for any replacements in case the old appliance stops working completely.

2.      Protection against Lawsuits

If a visitor, labor, or trespasser gets hurt on your property, this can lead to liability for you to pay their medical bills or even a lawsuit for damages. You can add personal liability into homeowners insurance to protect you against such instances.

3.      Protection against Theft

You can sleep better at night now because homeowners insurance will cover your home and assets against any loss or damage due to theft or vandalism.

4.      Covering Your Mortgage Defaults

Suppose you are paying a mortgage and fail to pay your monthly premium due to financial problems. Well, your homeowners insurance can offer you protection in case of emergencies and cover your monthly mortgage premiums till you get back on your feet.

The Take-Away

So, is homeowners insurance really worth it? Surely, your answer should be an inevitable yes. Homeowners insurance may cost you a tiny sum of the money on a monthly basis, but it will save you thousands for years to come.

It is not about having to buy home insurance but knowing that it is the logical thing to do. Not only will you get the best financial defense for your home and possessions against bad situations, but you also lead a happy life with no worries about emergencies.

Are you unsure what type of homeowners insurance you need or whether your current policy covers you for all of the above scenarios? You can speak to an experienced insurance agent on VeloxInsurance today. 

Sign up for Monthly Blog Updates

Categories

Blog Archive