Homeowners insurance is a very important thing to purchase when you own a house. It will protect your home from damages and protect your bank account from monetary loss. This is a type of property insurance that can also be called home insurance or hazard insurance. This type of property insurance protects against residential property. It also serves as a liability insurance in the case that something happens to someone on the property of the insured home. Homeowners insurance includes both property insurance to insure the actual property against structural damage and liability insurance to protect the people inside the home and on the property. There are many different reason as to why you would need homeowners insurance.
1. Someone breaks into your house. If someone breaks into your house and steals your belongings, then you will want to already have homeowners insurance so that you are not at a loss. If this happens then your homeowners insurance will cover the damage done to your house as well as cover the monetary value of the items lost.
2. Your house burns down. If your house burns down and you don’t have insurance then you will be at a huge disadvantage because you will be without a home but still have to pay for it. If you have homeowners insurance, than it will be covered and you can get the money to buy a new home.
3. A neighbor kid is jumping on your trampoline, falls off and hurts themselves. Yes, even if a neighbor’s kid comes into your yard uninvited and jumps on your trampoline, then you would be considered at fault if they were to fall off and harm themselves. Yes, you would be at fault. So this means that you would have to pay the damages that were accrued by the child’s medical bills and any other liability costs. However, if you have insurance, then you will be covered. You should probably put up a fence as well.
4. A tree falls on your house. If a tree falls on your house then that is a very unfortunate event and an even more unfortunate event if you don’t have insurance. If you are not insured then you will have to pay for the damages to your house. If you have insurance, then you will be covered!
5. There is a flood. If there is a flood and flood damage is included in your homeowners insurance then you will be covered with any liability and property damages that are accrued during and after the flood. However, if you don’t have insurance then you will have to pay for any damages that may occur during a flood. Also, if you are in a flood zone, then you likely have to get separate insurance to cover the incident of a flood on your property. The same applies for earthquakes in an earthquake zone.
As you can see, there are many different reasons as to why you need homeowners insurance. Make sure to also review your policy to see if you have everything covered that you need covered.