Costs of living around the country are increasing, and as a homeowner, it seems financially irresponsible to not purchase a property insurance. That being said, your home is the biggest and perhaps most costly investment you’ll ever make in your lifetime. Thus, it only makes practical sense to protect your investment with insurance. In fact, a lot of homeowners around the globe are already doing so. Here are five reasons why this type of insurance is important.
Protection Against Property Damage. Property insurance offers coverage against a lot of natural disasters including, but not limited to, monsoons and floods, fires, earthquakes, theft, and other weather-related damages. Regardless of your home’s size, location, and other security features that you may have added, no property is invulnerable to fires, floods, or burglaries. In some cases, the land your property is built in can also erode and send your home crashing down. Being a huge structure, homes have a lot of vulnerabilities; cover it with an earthquake or hurricane property insurance.
Protection Against Liability. A less known benefit of property insurance policies is its liability coverage clause. Many other forms of insurance policies including auto insurance include this provision. Sure, being a careful homeowner can help prevent a lot of accidents and injuries, but an incident could include your neighbors or your neighbor’s home. Liability coverage from your property insurance can help protect against these potentially costly incidents.
Protection Against Power Outages. Power outages were more frequent in the past, but still occur from time to time. If you run your computer or other electronics on a power cord, these outages can cause serious damage to your devices and shorten their lifespan significantly due to surges, Power outage can also cause food to spoil, which is why a lot of property insurance from homeowners include a refrigerator-restocking provision that can pay out up to $500.
Protection For Your Art And Jewelry. For homeowners who have expensive jewelry, art pieces, or other valuable possessions in their home, ask your insurance provider about adding a floater to your property insurance. This add-on feature will pay out for any damages to your personal items. Keep in mind, though, that these add-ons only usually have a fixed amount that will be paid.
Protection For Commercial Ventures. If you decide to rent your property out to a third-party, whether as a dorm room for college students, for families with kids, or for singles with pets, you are held responsible for any structural damages or personal injuries that they cause during the occupancy. In the event that your tenant gets hurt and files a law suit, the insurance may also offer some protection. Moreover, if you are caught in a situation wherein you need to file a lawsuit against your tenants for not paying rent or causing damage to your property, property insurance can also pay out for that.
Final Thoughts. These are just some of the many things that a property insurance can protect you from. Note that not all insurance policies are cut from the same cloth. You’ll want to sit down and discuss with a trusted insurance provider about specific coverage features that work best for your property and personal circumstances. For instance, if you live in a neighborhood that has historically withstood power outages, then tailoring your insurance policy to cut that feature from your coverage makes practical sense.