3 Reasons Why First-Time Homeowner’s Should Get Home Insurance
Owning a home can be an expensive endeavor. In addition to the monthly mortgage payment, you have to have money set aside to furnish, landscape and maintain your house. Having a homeowner’s insurance policy can be an effective tool in helping to pay for any damage that occurs to or on the property.
Receive Help Paying Damages If Someone Gets Hurt
If an individual is hurt while on your property, that person may take legal action to recoup medical bills or damages incurred.
Your homeowner’s insurance provider will help to pay those damages up to the limits specified in your policy.
Homeowner’s insurance policies can also help to cover damages if your dog bites another person whether the bite takes place on your property or somewhere else.
In some cases, you could be on the hook for tens or hundreds of thousands of dollars in actual, compensatory or punitive damages if you lack coverage.
Your Mortgage Lender May Require It
There is a good chance that your mortgage provider will require that you have a homeowners insurance policy.
This ensures that the property can be repaired if necessary. It also ensures that a lawsuit or other claim won’t hinder your ability to make mortgage payments on time.
The good news is that most home insurance policies cost roughly $500 a year, and insurance premiums can be rolled into your mortgage payment.
Homeowner’s Insurance Could Pay for a New Roof
Let’s say that a major storm hits your area and it causes a tree to fall on your roof. Your homeowner’s insurance policy will likely pay for some or all of the cost to repair or roof replacement.
The same may be true if your roof is damaged by pests or for any other reason besides negligence or disregard on your part.
It is important to note that the insurance company may not pay for all of the damage if the roof has hit or exceeded its predicted useful life.
In other words, don’t expect a full payout if the roof needed to be replaced prior to a disaster occurring.
A homeowners insurance policy can be beneficial for a first-time homeowner who may not necessarily understand just how expensive owning a home can be.
Purchasing an insurance policy means having peace of mind that you won’t have to fork over even more money for a new roof or to make other repairs.
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Category: Home Insurance
