What is Homeowners Insurance and Do I Need It?

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Creative Commons License photo credit: Ruth L

Homeowners insurance is recommended for any one who is considering purchasing or leasing a home or anyone who has a mortgage or considering a mortgage. This insurance works like any other insurance, it protects your investment. Insurance companies make it as easy as possible for homeowners to acquire affordable insurance for their home and property. Mortgage lenders depend on homeowners insurance to protect their interests. If a homeowner defaults on mortgage payments the insurance protects the lender’s investment. Previous insurance companies are the best source of information and will generally give discounts if customers purchase more than one product from their company. Real estate agents are also a great source of information when seeking to acquire homeowners insurance. They have insight into the latest laws and rules concerning homeowner?s investments, insurance and other valuable protection that individuals need.

It is wise for homeowners to talk to several insurance companies before they make a final decision. It is relevant to the insurer to purchase the right kind of insurance at the right price. Not having enough insurance can be devastating in times of emergency disasters. Injuries happen everyday and if someone is injured on personal property belonging to the insurer he or she can be sued, by the injured party or / and their representative. Homeowners insurance protects not only the insurer but others as well.

How much insurance coverage the homeowner needs can be easily calculated into several factors. Making a analysis of how much the home is worth (value) and how much it will cost to replace or rebuild, is essential when seeking to purchase homeowners insurance. Not being properly insured is the same as being under insured. If a $150, 000 house and it contents is destroyed by fire and the insurer only has$100,000 worth of insurance the insurer would have to pay the remainder of the house’s value and replace the contents, all out of pocket. By having the proper amount of insurance this scenario would only be a scenario. Homeowners are encouraged to protect their investment by insuring their property and contents for what they are worth.