About to buy your first home?
Congratulations! It’s no small thing to be able to afford a house or condo, especially in many large cities. You might be overwhelmed with costs, such as down payments, inspections, closing fees, to name a few. Insurance for your home is something to consider, also.
Do you need home insurance? While it is legally possible to own an uninsured home, you will find most financial institutions will need it for a mortgage. Even in a cash sale, home insurance is an important protection for you and your family.
Read here to learn more.
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Why Do You Need Home Insurance?
As mentioned above, if you need financing for your home from a bank or any commercial lender, you will be required to buy home insurance. This gives your lender protection for their investment in your home. If your home is damaged, insurance protects both you and the lender from losing money.
The same is true if you are purchasing a condo that is part of a larger collective. Your condo association or landlord will require insurance for the same reasons as a mortgage lender.
But there is a more personal reason to have home insurance. Your home is your biggest financial asset, and insurance on your home will protect you from possible financial ruin by offering coverage in different ways. Here are a few:
If your home is damaged by certain incidents, such as storm or fire, your coverage will help pay for repairs. The amount you will need will depend on the replacement value of your home, as well as the size.
Personal Property and Liability Coverage
Property coverage will help pay to replace items such as furniture, that might be damaged in a fire or storm. Personal liability coverage helps pay for repairs, legal and medical fees if you or a family member damage someone else or their property.
Extra Living Expenses Coverage
If you can’t stay in your home after a disaster, your coverage can help pay for temporary alternate housing costs.
These are a few of the types of coverages you should get when purchasing a homeowner’s policy. Different protection levels range from ultimate protection to the bare essentials, so you can choose what will fit your needs and budget.
How To Get Home Insurance
Understanding a home insurance policy and what it covers is your first step to obtaining a policy. Know the replacement value of your home and it’s contents, and purchase coverage for that amount at the very least.
Consult two to three insurance providers to get quotes for the coverage you want, and compare them. Some providers will offer you a discount if you buy both your home and auto insurance through them. This type of discount can help ease some of your cost worries.
Stay Protected in Your Home
So, do you need home insurance? The answer is yes.
By purchasing a home insurance policy, you are giving yourself and your family security that will prove worth the cost if you should experience any damage or issues with your house, garage, and yard.
While not the most glamorous of purchases, insurance is a part of homeownership and is worth your time and money to explore and obtain.
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