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4 Reasons Why You Should Have Home Insurance

Buying a home is a huge financial investment. While it’s well worth it to have a comfortable and safe place for your family to live, owning a home doesn’t come completely risk-free. Because life happens, having the proper protection in place is important, even necessary.

Here are four reasons why every homeowner should have a rock-solid home insurance policy.

1- Your Lender May Require It

Although you can legally own a home without also having homeowners insurance, it will be hard for you to obtain a mortgage without having a policy in place. To be approved for a loan, most lenders require you to have sufficient home insurance coverage.

2- To Protect Your Personal Liability

Having an accident take place on your property is not an unlikely scenario. Do you have a dog, neighbor kids jumping on your trampoline, or even any stairs leading up to your front door? No matter how careful you are, there is always an accident waiting to happen.

Liability insurance covers injuries to others that occur on your property. This would cover the cost of medical bills, lost wages, and rehabilitation (up to the policy limit). Liability insurance also covers your court costs and personal assets should someone decide to sue you for damages.

3- For Covering the Replacement Costs After a Theft

If you are the victim of a home burglary, home insurance helps to reimburse what it will cost you to replace your stolen items. This includes most anything inside or outside your home. Insurance will also pay to repair any resulting property damage, such as a broken window.

Another perk is that a standard policy also includes off-premises thefts, such as lost luggage or stolen electronics that are with you on vacation.  

4- In Case of Natural Disaster

Even the most basic homeowner’s insurance policy covers a wide range of disasters. This may include:

  • Lightning, fire, smoke

  • Water damage

  • Wind

  • Snow and hail

  • Explosion

  • Riot and civil commotion

  • Vehicles and aircraft

Depending on your location’s specific risks, add-on coverage can be purchased to cover events like earthquakes and termite damage.

Another cost that quickly adds up, but is covered by insurance, is temporary living expenses. Hotel bills, meals, and necessary toiletries are paid for by insurance when you can’t remain in your home while it is being repaired.

Keep in mind, there are many different insurance products catered to meet every individual’s need (condo insurance, recreational vehicle insurance, etc.). For help choosing insurance that is right for you, talk with a knowledgeable and experienced agent who can walk you through the process of buying home insurance in Torrance, CA.

Contact Insurance Center Associates today!