Most people are familiar with the reasons why automobile insurance is so valuable, usually because it is a requirement of driving and vehicle ownership. However, if you have recently purchased a home, or are in the process of doing so, you may be wondering whether or not you should also consider purchasing homeowners insurance. The fact is that homeowners insurance is as equally important as automobile insurance, if not more so, as your home is your greatest investment, and it is vital that you take the necessary steps to protect this investment. In case you still need convincing of the importance of homeowners insurance, here are just a few of the reasons why you should purchase this protection for your home.
You May Be Required To
Just as you are required to purchase automobile insurance, there are many circumstances in which you may be required to purchase homeowners insurance when you buy a home. It may be that your state or local jurisdiction requires it, or that the homeowners association you are moving into requires it. Outside of geographical requirements, one of the most common reasons people have to purchase homeowners insurance is that they are required to do so by their lender. Many lenders will require a homeowner purchase insurance for their home as part of their loan agreement. Since the house acts as collateral on the loan if the buyer goes into foreclosure, lenders want to make sure that their investment is protected, which is why they generally require you to purchase homeowners insurance.
Protection After a Disaster
Not only does homeowners insurance protect the lender, but it will also protect the homeowner’s investment in the event of a disaster. Due to the value of a home, it can be truly devastating when one’s house is severely damaged, or lost entirely, due to fire, flood, earthquake, or some other form of natural disaster, as you will be left with nothing of your investment. This is where homeowners insurance can be so beneficial in protecting you, as your insurance will help you to repair, or rebuild, your home in the event of such a catastrophe.
A Guaranteed Place to Stay
With homeowners insurance, you will also not have to worry about where you will go in the event that your house is damaged or destroyed. Homeowners insurance will ensure that you are not left homeless after such a catastrophe, as your insurance will provide you will temporary housing until your home is repaired or rebuilt. This can give homeowners a peace-of-mind, as they do not have to fear being stranded without a place to go in the event of a natural disaster.
Your Belongings are Protected
When homeowners think of homeowners insurance, they generally think of what it does to protect their home itself. However, where homeowners insurance can be particularly beneficial is in the fact that it also protects the items within your home as well, including all of your belongings. This means that in the event that your home is robbed, or your home is destroyed, you will not have to worry about the cost of replacing your missing belongings. Your homeowners insurance will help to cover these costs.
There are many reasons why it is so important that all homeowners purchase homeowners insurance. Most notably, homeowners insurance gives people a peace-of-mind by letting them know that they are not alone or unprotected should disaster strike. If you are considering purchasing a home, or have recently purchased one, and you do not have homeowners insurance, it is vital that you purchase insurance for your home as soon as possible. Contact us to learn about more of the reasons why it is so vital that you purchase homeowners insurance for your home.
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Rob Macoviak is the President of Oyer, Macoviak and Associates. Oyer, Macoviak and Associates is the oldest independent insurance agency in Boynton Beach and has been in business since 1953.