Why do you need home insurance?
Investing in your own property is the most important financial decision you are likely to make in the entire lifetime. No other asset of yours, regardless of its price, can compare to the value of your own home. And as for any other worthy item you cherish, it needs to be properly protected. There are numerous causes that can lead to partial or complete damage to your home. Don’t wait until the inevitable happens. Protect your property in advance. In other words, invest in home insurance.
Why does anyone buy health insurance? Needless to say, to protect themselves from potential illness the treatment of which may leave them penniless. The same goes for home insurance. You cannot predict potential hazard. Be it man made or caused by natural disaster, a complete ruination of a house is a nightmare that can come true. So why do you need home insurance? Let us help you think of the most common hazards and disasters homeowners often face.
Malfunction of plumbing
Let’s not start from the worst-case scenario. Mind you, you may find yourself in a far worse situation than the one where you have to put up with a strong odor from the toilet and a few ruined carpets. However, malfunction of plumbing is a very common scenario. The costs of repair often exceed our expectation, not to mention the possibility of ruined floors and furniture, if you fail to react in time. Most home insurances cover this kind of damage without any problems or hidden requirements. Protecting your household from such an event will save your money and your nerves.
The possibility of a fire accident
Now we get to one of the worst-case scenarios. The possibility of a fire accident is real and if it happens, you may be faced with the total destruction.
Malfunctioning of electronic devices, negligence or arson — all these may be the cause of a fire that can swallow your entire home. However, you need to be careful about the insurance coverage in this case. Some insurance policies cover medical bills and legal fees in case a family member is responsible for the incident while others don’t. If you are not sure about the response of the insurance company to your claim, contact insurance adjusters that can help you handle damage caused by fire. And don’t forget to read the small print before you put your signature on the agreement!
Depending on the location and the probability of a natural disaster, insurance policies can be more or less expensive. Flood, earthquake or hurricane — if any of these make a real threat to your house and belongings, home insurance is an imperative.
You don’t have to cover your belongings against all possible hazards. If the region you live in is not hurricane-prone, you need not worry whether the wind will blow the roof off your house. However, if your house is built somewhere along a river bank or a seacoast, don’t hesitate to invest your money into home insurance that covers damage caused by flooding. You will be most grateful to yourself for thinking in advance!
Mortgage company may require you to buy home insurance
If you are still reluctant about buying home insurance, a mortgage company has another way to compel you to purchase one. They will refuse to grant you a loan if you don’t buy some sort of home insurance!
Their interest is clear. A mortgage company wants to protect its financial investment against the most common hazards that can bring about destruction to your home. If you don’t purchase an insurance policy yourself, they may force you to buy some sort of home insurance under the loan agreement you sign. It’s better to choose the one that suits your interests.
What is the extent of home insurance?
The extent of home insurance depends on the company and the policy itself. Most policies generally cover the physical structure of a house, outdoor facilities, garage and personal belongings such as furniture and electronics. But that’s not all. You can even cover legal fees and medical bills if someone gets hurt on your property. A broken window or a sprained ankle — you can submit a claim to your insurance company.
However, what you purchase is what you get. Read the small print and carefully inspect the coverage of your policy. If you believe that the insurance company is trying to bail out of its duties, contact A-Z Claim Adjusters to help you settle the claim. If you try to do it without professional help, you may end up getting less than you paid for.
What kind of damage is not covered by home insurance?
Even though insurance policies cover damage caused to household belongings, this does not apply to all sorts of items in your home. When it comes to household assets, insurance companies calculate their liability in accordance with the replacement value of a destroyed or damaged item. In other words, you won’t get the purchase value of an item, but its estimated market value at the moment of its destruction.
As for pricy personal effects, an ordinary home insurance will not be of any use. Even though insurance policies cover the damage caused by theft as well, this does not apply to items of extraordinary value. In order to sleep well, deposit your valuables into a safe storage unit away from your home.