Buying a home is undoubtedly one of the biggest financial investments you will make in your life, and as such, you want to do everything you can to protect it properly. While maintaining it regularly is a great way to do so, obtaining home insurance can also provide you with further and greater protection.
In general, home insurance, also known as homeowner’s insurance, is a type of policy that provides residents with financial and legal coverage in the event of accidents and damages. Depending on the type of coverage you get, your insurance will cover interior and exterior damages, damage or loss of personal assets, and injuries that may occur while on the property.
However, these aren’t the only benefits you get from obtaining home insurance. In fact, there are many more, four of which are briefly discussed in the post below.
To secure financing when buying a house
While there may be an occasional buyer who can make a purchase in full cash upfront, many people will most likely need to take out a mortgage to secure financing and buy their dream home.
In order to be able to do this, your mortgage lender may require you to obtain home insurance to protect both their investment and your debt in the event of accidents or damages of any kind.
But, because home insurance rates vary between companies and provinces, you should do some research before settling on the first one.
For example, if you are purchasing a home in Belleville, Ontario, make sure you consult with a reputable broker and shop around for multiple quotes to find the best Belleville home insurance policy for the right price.
To cover your home’s structure
Another great advantage of obtaining home insurance is to protect your home’s structure. In more legal terms, this is referred to as dwelling coverage and offers protection of your house’s entire structure, wall-to-wall carpets, and built-in appliances. It also encompasses any detached structures you might have such as a cellar, an attached garage, a tool shed, or a gazebo.
The way your home insurance can help you is to provide you with financial coverage for the rebuilding or repairing of your home which may have been damaged from a natural disaster such as a hurricane, lighting, fire, or hail.
However, it is important to note that your insurance will not cover any damages caused by routine wear and tear.
To safeguard your property from theft and vandalism
In addition to protecting the outside of your home, your insurance policy can also cover the inside of your house and safeguard your property and personal belongings from theft and vandalism. This usually includes things like furniture, electrical devices, and appliances.
Whether your home was subject to vandalism or theft, your home insurance policy will reimburse you for the items lost or damaged inside your home, either up to a certain amount or in whole, depending on the type of policy you have purchased.
Before obtaining home insurance, make sure you take inventory of all of your personal belongings that can be covered by the policy as well as keep all receipts and store valuable items in a locked safe.
To protect yourself from liability
Probably the biggest reason why you should obtain home insurance is to protect yourself from financial and legal liability in the event of accidents or injuries that may arise on your property.
For example, if someone slips and falls on your property and ends up breaking their arm which prevents them from going to work, they can take legal action to be compensated for their income. This compensation will include paying for all lawyer fees, medical bills, and other expenses for which you will have to pay out of pocket.
However, if you want to avoid making these payments, you can rely on your home insurance policy to cover the costs for you and give the injured party the right compensation they need.
Final thoughts
Although obtaining home insurance isn’t required by law, there are many benefits you can get from having it. From covering the repairs of your house caused by natural disasters to protecting yourself from liability, the peace of mind you get from having home insurance is priceless.
For more information, refer to our post and read about the many ways a thorough home insurance policy can help you.