The Integral Role of Home Insurance Cover in Your Finances

Thursday, January 22, 2015, AM | Leave Comment

Your home is the biggest investment you will make in life. In fact, it is a major aspiration for every individual who is engaged in an income generating activity. With a home, you become financially free by disentangling yourself from the yoke of rent payment.

As such, you need to viciously protect your investment through a home insurance policy. You might think this is an obvious financial decision, but a study by Insurance Information Institute (III) shows most homeowners ignore it all the same.

As a new home owner, it is imperative to appreciate the value of insuring your single-most important investment.

  • Home Insurance in Detail

    The whole idea behind insuring your home is to get you back to your feet in case of a disaster. In a world where uncertainty is the order of the day, you need to have some form of security knowing that someone is watching your back in case your home is lost, say in a typhoon.

    Home insurance companies charge you a premium annually in order to cover your property. Every insurance package has a specific list of perils it covers. As such, you need to buy a policy that covers what you think is a real danger for your property.

    For example, fire coverage is critical if you live in California because the state is susceptible to forest fires.

    Moreover, urban suburbs require insurance cover against burglary because these incidents are common. A home insurance is so crucial that no mortgage provider will offer financing without appending coverage as part of the requirements.

  • Examining the Value of Home Insurance

    In a report by the Property Casualty Insurers Association of America (PCI), a poignant statement rings true; home insurance is one of those things you only think about when you really need it.

    If your home catches fire and is burnt to a frazzle, you start thinking about a grim future because you didn’t invest in home insurance cover.

    To appreciate why you need to talk to a home insurance provider today, consider some of these practical benefits you get from this policy:

    • Peace of mind: When disaster strikes, your insurance provider will be at hand to help you back to your feet.

      As such, you know your family will not have to sleep out in the cold when unavoidable disasters strike.

      This confidence accords you peace of mind and you can concentrate your energies on other weighty issues.

    • Protection against uncertainty: If you look at most of the catastrophes that have plagued the country over the last two decades, you will concur most of them were unpredictable. As such, you need to have an established home insurance provider covering your back in case misfortunes strike.

    • Getting you back to your feet: With an insurance policy, you will be able to get back to your feet financially, irrespective of the situation.

      For instance, if a burglary occurs and you lose precious items, your insurance provider will cover the cost of replacing the same.

      If your neighbor’s property is damaged, liability coverage in your policy caters for such expenses thus setting you free financially.

Truth be told, living without home insurance is a sure way to financial ruin. It is akin to going sailing without any safety gear just because the waters look calm; what you don’t know is that the perfect storm could be forming underneath.

Author BIO

Jack Huntington is a former insurance executive who now serves as a consultant in the industry both for home insurance companies and customers. He is also a prolific blogger specializing in home insurance.

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