Whether you’re buying a new home or you’ve already paid off the mortgage, you may have wondered about the value of home insurance. Do you really need it? Your home is likely one of, if not the most, valuable assets you have. Homeowners insurance helps protect that investment — and you — in a variety of ways.
Owning a home costs a lot of money. The mortgage itself eats up a big chunk of your housing budget, but property taxes, furnishings, and insurance bump up your monthly financial commitment even more. Homeowners insurance protects your home, which may very well be your largest investment, and gives you a sense of security.
Basic homeowners policies cover damage to the house caused by fire, vandalism, hurricane, lightning, or other specifically covered events. Homeowners policies also cover loss or damage to personal property due to theft or other covered events. Expensive collections of jewelry or furs might need additional rider policy coverage. Losing possessions can be a shock if you never considered that possibility when opting against homeowners insurance. Policies also cover liability up to certain limits, protecting the insured in case someone injures himself on the property. They also pay for costs if someone sues the homeowner. Some people increase the amount of liability insurance they have with umbrella or extension coverage.