When purchasing a home, you may wonder whether home insurance is something to invest in. Many mortgage companies require that you own a policy. Yet if you purchase the home outright, or paid off the mortgage, you could be debating on whether to have this type of insurance. Learn about why home insurance is important to have:
Asset Protection
A range of dangers can happen to your home. Flooding, fire, severe storms, vandalism, and theft may cause your possessions to become damaged. Home insurance protects your valuable assets by offering fair market value for their replacements. So if a home catastrophe strikes, you can replace your belongings and other investments.
Mortgage Lenders Require One
As mentioned earlier, if you take out a mortgage, the lender will require you to have home insurance. The insurance policy provides liability protection to the mortgage company if a disaster strikes. If you decide not to purchase a policy on your own, the mortgage lender typically will purchase one and then charge you for it. So you may end up paying more than expected by having the lender buy it.
Variety of Policies to Choose From
Home insurance policies vary in what they will cover. Some types of coverage may include personal property coverage, personal liability coverage, and dwelling coverage.
Personal property coverage will replace certain belongings that become damaged or stolen, such as furniture or appliances. Personal liability coverage is if an accident occurs on your property where someone else becomes injured or you end up damaging someone’s property. This coverage will pay for damage and medical bills. Dwelling coverage is a policy for structures attached to your house, such as a garage or a deck.
When getting any repairs or replacement systems to your home, your insurance may cover the costs depending on the terms of the policy. Speak with our experts here at Brandstetter’s KangaRoof to discuss your next home project.
