Why You Need Homeowner’s Insurance

Homeowner’s insurnace is the thing that you hope to never use, however if you ever have to use it, it’s probably to cover something unexpected. Unlike owning a vehicle, you are not required to have insurance if you own a home, however, it is often highly suggested or in some cases depending on the lender, you might be required to have homeowner’s insurance. Here’s why it’s a good idea to make sure your house is covered:

Damage from fire, flood, natural disaster, and more. Ever experience damage from a natural disaster such as downed trees toppled on your roof or a fire that breaks out in your home? Where do all those fixes come from? Most of it, if you have it, will likely be covered under homeowner’s insurance. These types of disasters are unexpected and can happen anytime, sometimes when the funds may not be readily available to solve these problems. That’s why homeowner’s insurance can cover these types of unexpected disasters.

It’s important to understand that in some cases, depending on where you live, you may have to purchase additional coverage to cover floods and earthquakes as these types may not be covered in basic insurance policies. A homeowner’s insurance policy can save you thousands–if not, millions–of dollars in damages to your home.

A lender may want you to cover the home. Remember, while you’re paying off your mortage, the home technically belongs to the lender. In most cases, the lender will want homeowners to protect the home, seeing as the lender technically owns it and prefers it protected.

Owning a home is a liability. Keep in mind that when you have guests over, you are responsbile for them. Liability insurance covers anyone that might hurt themselves while on the premises of your property. For example, say a guest trips off your porch and breaks his or her ankle–the liability insurance will cover the medical expenses, at least those stated within the policy.

About the Author: Jim is a guest contributor from Arnouts Insurance Agency, a reputable insurance agency in Okemos and Lansing, Michigan, offering many insurance solutions and products. Vist them at arnoutsins.com.

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