Monthly Archives: April 2013

Why do you at least need basic homeowner’s insurance?

It is amazing how many insurance options are available today. Health – Car – Boat – Animals – Jewelry – Even body parts! These days you can ask a loaner to insure just about anything for a price, with borrower responsibilities. Some options can be a bit extreme, but why do you need to insure your home?

home

Well first of all, your home is a costly investment. Should something happen to it, it could take years to rebuild the finances to replace it. In a policy, the structure is often referred to as your “dwelling”. Homes are so complex in how they are built that the costs keep running from the studs in the framing to the last coat of paint. Don’t forget about the cost of building permits and inspections also. Unless you hired contractors to have your home built from foundation up, you probably aren’t aware of the actual costs to rebuild the entire thing, including unattached property such as a shed or garage. When purchasing insurance, consult to make sure your dwelling coverage is suitable to cover a loss.

The next reason to insure your home is that not only does it house you, but also most of your belongings. Should something happen to the house, your contents (or assets) will also be affected. It is going to take long enough to rebuild the cost of the house, never mind the cost to replace your clothes, furniture, kitchens supplies, books, TV’s etc. Think about the things you would pack to bring on a long trip. The cost of those items alone, especially necessities, would be enough to justify insuring them. What a relief it would be if you happened to have a major disaster to know that you don’t have to agonize over replacing everything out-of-pocket.

I’m sure that you’ve heard one rendition or another of “be thankful for the roof over your head and the food in your belly”. Well, what happens if your roof is compromised and no longer over head? You still need a place to sleep, keep necessities, and shower. You may have to temporarily rent a place until your restoration company completes the repairs. With homeowner’s insurance you may be compensated for some of the costs to do so until you can return home.

Lastly, if you’ve taken a mortgage out on the house you might be strictly required to purchase and maintain homeowner’s insurance. Some lenders will even refuse to agree to a mortgage unless the applicant commits to doing so. Should you drop your coverage on your home, your mortgage company could even take action against you. In this case, if you want to keep your home, be sure to insure.

From coast to coast, everyone lives in a place that is vulnerable to accidents and disasters. Know the value of your home, keep good inventory of your personal belongings, and always make sure that your homeowner’s policy is properly renewed. Between securing your investment, securing replacement cost for your contents, keeping up with your mortgage requirements, or making sure you have a place to go; you need to have insurance for your home.