You have invested thousands of dollars into being a homeowner, so it’s time to protect one of your most valuable assets. Homeowners Insurance is one of the best ways to protect your asset, and yourself, when life doesn’t go exactly as planned.
At Intempus Realty, we want to make sure you have everything you need to make and protect your investments. That’s why in this article, we’re going to break down 3 things you should (or need to) look into homeowners insurance.
- You May HAVE To Get HomeOwners Insurance
In certain situations, homeowners insurance is mandatory. One such case is if your lender requires it when finalizing your mortgage. In some situations, your lender may require proof of homeowners insurance. Lenders take a risk when you sign up for a mortgage; to protect themselves, they rely on homeowners insurance to make sure the financial investment is safe. This comes into play if your home is destroyed by a fire or damaged by severe weather.
Homeowners Insurance may not be the only requirement a lender will have. If your home is susceptible to certain types of damage, you may have to invest in other types of insurance like flood insurance.
If your mortgage requirement doesn’t require homeowners insurance, your lender is allowed to invest in insurance directly and then give you the bill. If you leave it to your lender, you may end up paying more for insurance than if you research and find an insurance plan that’s more affordable and fit for your situation.
- Homeowners Insurance Isn’t Just About Protecting your Home
Homeowners Insurance is designed to protect more than just the bones of your home. It can cover everything from your personal items, to any additional structures on your property, to your deck, to your yard, and more.
Here are some coverages that your insurance policy may cover:
- Additional Living Expenses: If your home is extensively damaged because of a fire or flood, your policy may cover the costs for temporary living such as an Air BNB or hotel.
- Guest Medical Bills: If someone is injured on your property, your insurance may even cover the costs of their hospital visits and treatments.
- Personal Liability: We know that Homeowners Insurance protects your home, but it can also protect you if you accidently damage someone else’s home or property.
- Other Structures: If your fence, shed, deck, or other external structures are damaged by an event covered in your policy, you can get it repaired or replaced.
- Personal Property: If your furnishings or personal belongings inside of your home are stolen or damaged, they may also be a covered loss.
- Dwelling Coverage: Attached structures like a garage or patio are also likely covered. The amount of coverage will likely be determined by the square footage of your home (keep in mind, that this is not the same as the market value of your home.)
- Limits & Deductibles
All coverages come with limits and terms. Make sure that you know what your policy covers (and what it doesn’t) and how much your provider will actually pay towards a claim. If you’re selecting from a list of options, make sure you think about how much it would cost to rebuild your home.
Also, making sure you understand your budget and how much you will need to pay in the form of a deductible is important. As a reminder, your deductible is the payment you must make to activate your insurance benefits so you can actually get the benefits of the insurance.
Although homeowners insurance can’t prevent issues with your home, it can give you peace of mind as a homeowner during unexpected events.
If you’re interested in homeowner’s insurance but don’t know where to start, we’re here for you. You can contact the Intempus Realty office here.
