Insurance can be expensive, and homeowners’ insurance is no different. While of course different companies offer varying premiums, all policies need to be closely examined, and benefits versus costs must be calculated. It certainly might seem easier to skip the whole process, but here are six reasons why you need to have great home insurance:
Your Bank Says So
You are not going to be able to even enter the closing process without a homeowners’ policy in place. Savvy first time homebuyers know that anything can happen--from flash floods to thefts and fires--and your lending institution has seen it all. All banks and mortgage lenders require homeowners’ insurance, and many times you will expected to pay the first year’s premium ahead of time and in full. The bank may then concurrently deduct an amount that will be placed in your escrow account to begin to cover next year’s premium.
You Need to Be Protected
Disasters don’t ask you if your insurance is in force before they wreak havoc with your property and belongings. If your house does burn down, at least you will know that you will have coverage and will be able to rebuild. If, on the other hand, you pay for your home in cash, do not get insurance, and a 100-year flood appears a few days later, your home could be a total loss, and you can be left with no way to pay for the damages.
A good homeowners’ policy in Dayton, Ohio will protect your belongings and pay for replacement if they are damaged or gone because of theft or a disaster. Even though you feel some things are irreplaceable, many items are, and it’s a great feeling to know that you are covered.
We live in a litigious society where people like to retain lawyers, assess blame for a multitude of situations and sue whomever they can. If you have possessions and money in the bank, you can be successfully sued if it can be proven that you were negligent and caused injury or harm to someone else. This could be as simple as someone falling down your newly waxed and polished hardwood steps. Good insurance can protect you and your assets.
Where am I Gonna Live?
If you live in an affordable apartment in Denver, Colorado or Columbus, Ohio, for example, and a winter storm or disaster destroys your home, your insurance company will find and pay for temporary shelter. If you have no insurance, you could be calling the Red Cross at 3:00 a.m. in the morning and getting ready for a trip to the local shelter.
Peace of Mind
If you have a million-dollar life insurance policy, you purchased that to protect loved ones, and you don’t need to stay up at night worrying about what could happen if you died. The same goes for your home. If you have good insurance, at least you’ll know you will have a way to start over.
Good businessmen and women know the importance of quality insurance. Disasters regularly happen, and your monthly premiums are not wasted money as they provide you with peace of mind and a method to start over if an unfortunate event occurs.