Home Insurance and Why You Need It
Buying your own home is many peoples’ dream, but to keep that dream from turning into a nightmare it is wise to take a few precautions. When you first get a place of your own your will probably (unless you are very rich), have a mortgage. And your mortgage company will, more than likely, insist that you have home insurance.
This is to protect their investment, your home, from fire, flood and any of the many catastrophes that can befall it. Although it is in theory your house, the mortgage company in fact owns it until you have paid them for it. If the house were to be damaged, or destroyed, the bank or mortgage company would have nothing to show for their investment and would be unlikely to be able to replace their losses.
After all with no home insurance you, as the borrower, would then have to pay both for the house that was lost and the one that you would need to live in. And since most people borrow up to their limit to get as nice a house as possible, there would not be much room for maneuver.
This is a rather acute scenario, although it is best to be prepared for most eventualities if you can.
Most householders unless they live in a hurricane or flood area are unlikely to encounter this situation. But home insurance is nevertheless, essential for most people whether or not you have a mortgage.
Most claims are for small amounts, such as broken windows and accidental damage to property. But a good home insurance will also cover you for many other things. Such as against injuries to people when they are in your property. This can also include any medical expenses, which can be considerable. Even an accident such as someone falling on a broken path can, if you don’t have home insurance lead to a great many expenses.
So there are many reasons to take out home insurance and above all it will help to give you peace of mind to know that whatever happens that you and your family home are protected.