Purchasing a home is the most exciting, memorable moment in our lives. This momentous occasion can be made even more special with homeowner’s insurance which protects you from disastrous events such as theft or fire and allows you to enjoy your property for years without worrying about what could happen if an accident were to occur. Imagine if your house suddenly caught on fire. You would want to know that the insurance company will pay for any damages caused by this unfortunate event and not leave you with a hefty bill in its aftermath.
Unfortunately, there is a lot of misinformation regarding home insurance out there. Still, luckily, we’re here today just getting rid of some myths about what you need as far as coverage goes! For instance, do I need homeowner’s insurance? Contrary to popular belief, yes, especially considering how affordable most homeowners’ policies are these days. Here is a short overview of five common home insurance myths and the potential consequences of believing them.
1: The Law Requires Homeowners Insurance
It’s often mistakenly thought that homeowners insurance is required by law in all 50 states. However, only some mortgage lenders require you to purchase homeowners insurance. They do this because it would be hard, if not impossible, for people who own their homes outright to afford rebuilding costs without any compensation or help from an outside source should anything happen. The lender requires this with a sense of caution and protection. As its investment on behalf of the homeowner goes beyond just giving out mortgages. Instead, lending money allows these individuals to invest time into finding ways to make more money by protecting those investments.
2: Homeowners Insurance is Expensive
However, discounts may make it more affordable and manageable for you to purchase your homeowners’ or renters’ insurance premium every year. Some insurers offer safety discounts if they notice that you have burglar alarms in the home. Burglars are less inclined to break into homes with an alarm system installed inside, which means lower risk for them, so higher value. Additionally, insurance companies also often provide various other types of discounts. Going 24 months without filing any claims can show responsibility towards their company’s policies, resulting in cheaper rates next time around.
3: Is Homeowners Insurance Worth the Cost
A house insurance quote can help you recover from a disaster. If, for example, your home is damaged by a windstorm and knocks over trees in your yard that destroy half your house. Not only will an insurer be able to pay for reconstruction, but they’ll also take care of replacing any destroyed items like furniture or clothes as well as providing housing while repairs are being made.
Imagine what would happen if your furry friend got loose and bit the neighbor. That’s not all. Imagine a guest getting hurt on your property caused by an unknown risk or suing you because they were injured during their visit. These are just two instances that show how homeowners insurance can protect you from unlimited dangers as opposed to being limited only for things like fire damage or theft.
4: I Can Make Repairs Myself
You have the option of having a contractor, builder, or handyman fix your own home, whether you are a contractor, builder, or handyman yourself. I can think of a few situations in which doing the work yourself is impractical and not worth the effort. One example would be replacing your roof after a tornado since you’ll lose many other valuables in the process. It’s also possible that your belongings will have to be thrown away if someone breaks into your house and steals your things. In this case, all your belongings were either damaged by water or stolen. You may not be able to pay for everything out of pocket, which is why sometimes filing the claim can make more sense than doing all the work on our dime, and it’s so easy to get a house insurance quote.
5: Homeowners Insurance Covers Flooding
There are countless ways to prevent flooding in America, but sometimes it is impossible because of the nature of the disaster. Your homeowner’s insurance company will not cover flood damage to your home unless you purchase flood insurance to protect your home from flooding. A private homeowners’ policy that covers floods is offered by the National Flood Insurance Program (NFIP), where many companies provide this type of protection for their customers. In addition to its higher price, there is the possibility of it seeming like an unnecessary expense, but if there is ever a natural disaster or a major storm, having a generator could be very beneficial.