Natural disasters caused damage to 1 in 10 American homes last year.
As a homeowner, you may ask yourself, “do I need homeowners insurance?”. With the rate of natural disasters increasing year by year and theft on the rise, you’d be remiss not to insure your property.
Homeowners insurance is designed to protect your home and belongings from damage and theft. In these chaotic times, it’s no longer a luxury to purchase homeowners insurance – it’s more of a necessity.
In this post, we’re going to explain why you need homeowners insurance. We’ll also give you a few important tips to get the best policy for your needs. Keep reading and you’ll realize that, when it comes to your property, it’s always better to be safe than sorry.
Why You Need Home Insurance Coverage
Homeowners insurance gives you financial relief in the event that you experience property damage. This damage could come from fire, water, smoke, falling trees, and even theft and vandalism.
If you don’t have it, you’ll be in a situation where you’re replacing all of your damaged property out of pocket. When you’re talking about a home and all of the things within, you’re looking at hundreds of thousands of dollars.
Different policies have different minutiae, but most of them will cover furniture, clothing, and other indoor possessions. This is in addition to your actual home and any outdoor possessions on your property. They may also cover medical expenses and legal fees if you or anyone is injured in the event leading to the damage.
If you’ve got any artwork, electronics, or expensive jewelry, you may need specialty insurance on top of your standard policy. It’s also unlikely that a standard policy would include flood or earthquake damage, but this depends on where you live.
Get the Best Home Insurance Policy
There are three levels of coverage: actual cash value, replacement cost, and extended replacement cost. Actual cash value covers the cost of the house and belongings, accounting for depreciation. You won’t get what you paid for everything, but what they’re worth right now.
Replacement cost covers the cost of the house and belongings without accounting for depreciation. This would allow you to replace everything in its original value.
Extended replacement cost allows you to rebuild and replace your house and items, accounting for inflation. This is the coverage that most experts recommend since it would allow you to completely replace everything you’ve lost, even at today’s prices.
To get the best policy for your needs, you need to consider how much you can afford. Compare insurers’ rates in your state and what’s offered in each policy. It’s also important to look at their claims response, as well as current policyholder satisfaction.
Do I Need Homeowners Insurance? Yes, You Do
If you’re still asking yourself, “do I need homeowners insurance?”, then we’ll make it simple for you. Yes, if you’re a homeowner, then you should have homeowners insurance. It may feel like an exorbitant expense, but you need to be prepared in a world where the potential of theft and/or natural disaster is higher than ever.
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