The Need for Home Owner Insurance
So you purchased a house. Congratulations! Buying a home is a big step in anyone's life and a
great investment. Now it's time to protect your investment by purchasing homeowner insurance.
Home insurance is an insurance policy that covers your house, the garage, other related
structures, and also personal possessions inside the home against damages caused by everything
from fire to natural disasters and even theft. Different insurance policies offer different levels of
coverage. An all-risk policy, for example, covers your home and your property against any and
all disasters or theft. However, just like with any insurance policy, the higher the coverage, the
higher your premiums.
Home Owner Insurance and Coverage
Many lending institutions mandate mortgage clients to have a basic level of homeowner
insurance to receive a home loan. This requirement guarantees them that in the case of a
catastrophic event; their mortgage balance will still be paid out. But you don't need to stop there.
Depending on what specific items and areas of your home you want protected and in what type
of event (i.e. earthquake, fire, theft) you want your home protected in, you can increase your
insurance coverage above and beyond the level required by the mortgage company. The price of
your home is fundamentally where you begin when deciding on the level of coverage for your
home. So, you need to first establish the amount it would cost to repair and/or rebuild your
home. Once that amount has been established, insure your home for that amount. Some
homeowner insurance policies also automatically adjust the level of coverage each year to take
into consideration appreciation and the increased value of your home.
Home Owner Insurance and Personal Property
Remember, protecting your home is not the only reason to get insurance. Different levels of
coverage can also protect the items in your home. It you want to protect your home and
everything in it, take inventory of your personal property, including furniture, high-end
electronics and appliances, and anything of value. This will establish a value for all items in your
home. Take this value and add it to the coverage level of your insurance policy. If you can't
afford that amount of coverage, take a percentage of the overall value of your personal property
and adjust the level of coverage based on what you can afford and what you'd want replaced. If
you want to protect your personal property, you need home owner insurance.
Home Owner Insurance and Pets
Believe it or not, your pets play a part in why you need homeowner insurance and in deciding the
level of home insurance coverage you choose. That's because your pets can cause damage to
your home and injury to others. Different levels of home insurance coverage also cover injury in
the home and protect you against lawsuits. If you have pets, remember that they can lead to
damage and injury; so invest in home insurance and choose your level of home insurance
If you want to protect your home and your family, you need home insurance. It covers you when
the unexpected occurs. Without it, you could end up losing everything. For more articles on
Home Insurance, visit Bills.Com