October 23, 2021


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Reasons you need a home insurance

4 min read
5 Reasons Why You Should Get Home Insurance | The World Financial Review

While home insurance isn’t a new topic, there’s still a significant percentage of the population that is skeptical about it. Home insurance policy, also known as home owner’s insurance, is designed to cover the home and its contents. Typically, a home is always prone to adversities emanating from extreme weather conditions such as lightning, earthquake floods, wind storms, and fire. There is also the need to protect the home from theft and vandalism, necessitating a home insurance policy. The contents of the building, e.g., employees, injuries at work, and costs arising from legal liabilities, also need to be covered. Some of the factors considered by insurance companies while determining the value to offer as compensation are location, the level of coverage required, and the risks involved. Before deciding on the amount, the insurance company first performs a home insurance analysis to determine homeowners insurance coverage.  Some of the reasons and importance of homeowners insurance are covered below. 

  1. Emergencies coverage.
    Home insurance comes in handy when unplanned emergencies happen. Happenings such as robberies, busting of pipes, and explosions in a home are unpredictable. Home insurance comes into offers protection in case any of these unforeseen events befall your home. Typically, with home insurance, the insurance company will offer compensation in case of emergencies.
  2. Financial protection
    An insured home is covered from unexpected events that require large sums of money to cover the damage involved. Since insurance companies always work by pooling risks of a vast demography, they are always in a position to offset the damages incurred with ease, thus covering the insured. This saves the insured from using their funds to cover for the unexpected happening. A home owner needs to ensure that their home insurance premiums are up to date. This will prevent delays in coverage as insurance companies check one’s premiums before accepting or declining a claim.
  3. Accommodation in times of crisis.
    Calamities such as fire break-outs, floods, explosions, riot, earthquakes, or other unforeseen calamities render a home unhabitable. Under home insurance policies, a homeowner, including others living in the house, such as their family included in the policy, are all covered in the event of such calamities. The coverage entails the insurance company providing an alternative place of residence for some time till a new home is build, or a solution is arrived at. Home insurance policies thus offer peace of mind even in times of calamities.
  4.  A safety plan
    Most individuals use home insurance plans because they give a sense of safety and peace of mind, knowing that no matter what happens to your home, it is covered till everything gets back to normal.  Home insurance helps avoid dreaded surprises as one is guaranteed reimbursements. It is essential and key to ensure that even with unpredictable happenings, we will be safe, comprehensive home insurance policies provide for this.
  5.  Replacement of destroyed or worn-out home items
    Depending on your home’s insurance policy, your old items will be replaced with new ones in the event of damage. Also, if furniture such as sofa’s decreases in value, your home insurance company will also replace them with new ones. However, it is important to always confirm with your home insurance what different policies cover before choosing the home insurance policy that best suits you.
  6. Protects against third party.
    Due to unavoidable circumstances, a third party may be hurt and experience damage or losses while at your home. This is where home insurance comes in, particularly if they file a lawsuit. Your home insurance may offer compensation to the third party depending on your policy and the circumstances in which they got injured or hurt.
  7. Home insurance is Relatively cheaper

Most Home insurance policy have relatively cheap premium subscriptions and offer quite a good amount of compensation.

  1. Mortgage lenders will require home insurance
    While it is not always a requirement by the law in your locality to have home insurance on your property. A majority of mortgage lenders and banks will insist on having home insurance before they can offer you a mortgage loan. The Home insurance will protect the lender’s investment in case of eventualities that may destroy the home.  

In conclusion, life is highly unpredictable and thus the need for insurance. When it comes to a home, it may be the only place you have to live in, and thus protecting it is important. To mitigate the risks involved in a home, taking a home insurance policy is inevitable. This article has specifically discussed the importance and reasons for having home insurance on your property. It thus helps persuade the reader of the importance of having one.

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