When Does Home Insurance Come In Handy?
“Yikes. I hope they have home insurance.”
That’s what my friend said to me as we walked past a house in the area that had a broken window. I don’t why or how it happened, but someone threw something through their window. This is clearly something that you don’t plan for. Nobody goes to sleep thinking that a rock will be thrown through the window.
I recently had a discussion with a friend who just moved into his first place. He was complaining about the cost of home insurance. He felt that it was too much money and that he didn’t need it. I think that he just didn’t budget for this extra expense and was now frustrated with it.
When does home insurance come in handy?
When a force out of your control strikes and you can’t afford to cover the damages
Just a few years ago, through some unlikely chance of bad luck, there was a tornado that hit parts of Ontario. Some people had home insurance to cover them through all natural disasters. Others didn’t and were stuck with the expenses.
You never know what can happen. Natural disasters aren’t pretty and they can strike at any time. In 2014, dozens of houses in my community were flooded. You could only imagine how much fun that was to deal with. If you’ve ever experienced water damage, you know that water is serious business. When a room gets flooded, there’s a lot of work involved. My friend was out of his basement for two years because of a flood.
You don’t want to be legally responsible for anything that happens inside of your home
Yes, you’re legally liable for anything that happens inside of your home. An article on home insurance makes an excellent point:
“For example, if you throw a goodbye party for a friend and a guest trips inside your property and hurts himself, he could hold the owner of the property (you) responsible. Homeowners insurance should pay for the injured party's medical expenses and protect you against legal problems.”
Home insurance is simply about protecting yourself from all angles when it comes to your largest asset.
In your 20s, you have tons of expenses. You want to make it out to the bar every weekend. You also want to ensure you have a to come back to.
How do you save money on home insurance?
If you want to save money on home insurance, there are a few things you can do to risk the insurance company’s risk:
- Raise your deductible
- Get an alarm system
- Combine all of your insurance plans
- Shop around for the best home insurance rates
The last thing that you want to find out after your basement was flooded is that you don’t have the proper insurance or that you cut costs where you really shouldn’t. Make sure you get the best home insurance policy you can afford for the best protection possible.
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