Home Insurance: 4 Reasons Why You Need It
Buying a home is one of the biggest investments that you will make in your life. Therefore, it’s vital that you take the necessary steps to protect this investment in the form of a great home insurance policy.
While home insurance policies can take on many different forms and offer many different coverage options, there is one thing they all have in common – They offer homeowners the protection they need to protect their investment and assets, and gives you peace of mind in knowing you are protected.
Here are 4 reasons why you need a home insurance policy:
1. It’s required to get a mortgage
In Ontario, homeowners are required to have a home insurance policy in place in order to qualify for a mortgage. The coverage at a minimum must cover the replacement value of your home. Even though it’s required, the benefits far outweigh the cost of your policy.
2. It protects your assets and investment
Buying a home is no small investment. Home insurance helps you protect your assets and your overall investment in your home. What would you do if you had a fire and didn’t have home insurance to cover the cost of the damage? For this reason alone, a good home insurance policy is worth its weight in gold.
3. It gives homeowners peace of mind
Imagine worrying about every potential threat that could cost you money or do damage to your home? This would be the reality without home insurance. Home insurance gives you the peace of mind in knowing that if a storm causes damage, you are a victim of a break in, or if you have a fire, your insurance policy will cover the cost of the damage and help you get back on your feet.
4. Liability protection
One often overlooked but very important component of any home insurance policy is liability protection. You never know when someone can get injured on your property and if they do get injured, you are liable as the homeowner. From a mailperson slipping on ice, to a neighbor getting injured on the trampoline in the backyard, and dozens of other potential threats, you never know when you may face a liability lawsuit.
Perhaps the true value of home insurance is not found until you need to make a claim. If you have never made a claim, be happy about that. If you have needed to make a home insurance claim in the past, be happy that you had home insurance to help offset the cost of the claim.