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The United States is a nation of homeowners. Over 60 percent of Americans own a home.
If you’re among these people, you certainly know how good it feels to live the “American Dream.” And if you’re looking to purchase your first home, it’s clear you’ve made a smart decision.
However, homeownership comes with its fair share of challenges and risks. For instance, a natural disaster can strike and leave you homeless and in deep loss.
If you’ve been thinking of a way to address these challenges, one of the questions in your mind has to be, “Do I need homeowners insurance?”
Well, you do! And here is why:
If you’re hunting for a home to buy, it’s likely you’ll pay for it via a mortgage.
Because of the risks involved, mortgage lenders require home buyers to purchase home insurance as part of the loan approval requirements. This way, they’ll be able to recoup their investment should anything happen to the property.
So if you’re wondering whether or not you should purchase homeowner’s insurance and you’ve applied for a mortgage, you’ve no choice. But if you opt not to purchase this insurance coverage under your name, the lender is at liberty to purchase the coverage and add the premiums to your mortgage.
Protection From Losses
As a homeowner, you’re exposed to a range of potential losses.
Did you know a burglary takes place every 18 seconds? A burglar can break into your home, vandalize things, and make away with your valuables.
Or if the property is located in an area that’s prone to natural disasters, a storm can rip it up and render it unlivable or cause significant damage.
Any of these scenarios will leave you counting your losses. You can call local restoration companies to come and patch things up in the event of a natural disaster, but depending on the extent of the damage, the bill can run into thousands of dollars. But with home insurance coverage, you don’t have to worry about the losses and damage because your provider will compensate you.
Somebody can sue you for compensation if they sustain an injury while in your property. For example, if you hire a plumber to fix a leak in the kitchen and they slip, fall and break a leg, they’ll have a solid case against you in a court of law.
Home insurance protects you from liability in such instances. The company will compensate the claimant accordingly.
Great Peace of Mind
At the end of the day, you want to enjoy your homeownership experience. Home insurance enables this. You’ll go about your day to day activities knowing your home is protected regardless of life’s risks and uncertainties.
Do I Need Homeowners Insurance? No Doubt!
To this end, the question, “Do I need homeowners insurance?” can only have one answer: Yes!
That said, keep in mind home insurance policies vary from lender to lender. Read through the fine print to know the extent of the coverage before signing up.
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