Purchasing and owning a house is both a rewarding and hectic experience. With so much that can go wrong with a house and property, it is crucial to have home insurance to cover everything. Murphy’s Law may not have been written specifically about your deed, but it is important to understand that problems will inevitably arise. With a policy in place, these problems can be minimized and, at times, avoided altogether.
The most common problem that homeowners deal with is natural disasters. Storms and fires displaced over 22 million people in 2014 alone. The destruction of your home and property can be much more problematic than the loss of your valuables, as you and your family may be left without a house to stay in. What you might not know in this situation is that not only will your coverage pay for the purchase of a new house, but they will also temporarily take care of your living expenses, such as any hotel and meal costs that are a result of your displacement.
Another unfortunate problem that homeowners face is securing their valuables. Every year, two million burglaries take place in the US. The results are millions of dollars in stolen items, as well as a high amount of property damage. This is another emotionally difficult situation that home insurance can make that much simpler. Almost any goods and damages will be replaced and repaired (depending on your policy). This extends to luxury items such as jewelry, art, and high-end electronics. What might come as a surprise is the standard “pairs and sets” policy. If part of a pair is stolen, such as a cooking knife or a lamp from a set, the entire set will be replaced.
Coverage can also help for injuries. If a guest, family member, or even a pet is involved in an accident or injury in your house, home insurance can offer you protection and assistance. This includes medical costs and home repairs that are a result of human or animal error. Many people do not think to contact their provider for something of this nature, but the truth is, if it happens in your home, it is likely going to be covered.
Basic insurance usually covers the cost of major appliances, including the refrigerator. Depending on your policy, this can include the food as well. If your power goes out or the refrigerator simply gives up, you can receive upwards of $500 to replace the perishable items that may have spoiled.
Aside from all of these reasons why homeowners insurance is helpful, it is often necessary. If you are still paying a mortgage and do not outright own a house, you are required to purchase coverage.