Today, most homeowners purchase home insurance to financially protect themselves in the event of damage to their property. Home insurance is not required by law, but your mortgage lender will likely require you to have it. Even if you own your home outright, this insurance is a good idea. Here are some benefits of having home insurance.
Protection from liability
Homeowners are responsible for any accidents that occur on their property, even if they are not at fault. For example, if a delivery person slips and falls on your icy driveway, you could be held liable. If you have the insurance, your insurer will provide legal defense and pay any damages for which you are found liable, up to your policy limit.
Replacement cost coverage
This insurance will pay to repair or rebuild your home if it is damaged or destroyed by a covered event, such as a fire. Most home insurance policies provide replacement cost coverage, which means the insurer will pay whatever it costs to repair or rebuild your home, up to the limit of your policy.
Personal property coverage
The insurance also covers your personal belongings, such as furniture, clothing, and electronics. If your possessions are damaged or destroyed by a covered event, such as a fire or theft, your home insurance policy will reimburse you for the cost of replacing them.
If your home is damaged or destroyed by a covered event and you need to live elsewhere while it is being repaired or rebuilt, your home insurance policy will reimburse you for the cost of temporary housing.
Most home insurers offer discounts for things like installing security systems, smoke detectors, and deadbolt locks. Some insurers also offer discounts if you purchase other types of insurance, such as auto insurance, from them.
These are just a few of the benefits of having home insurance. Home insurance gives you peace of mind knowing that you and your possessions are protected in the event of damage or destruction to your home.