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Do you Really NEED Homeowners Insurance

Posted by admin on June 6, 2016
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Ok, it is mandatory in California when you buy a house using a loan. You have to get homeowner’s insurance or the bank will not finance you. How often do we file claims though and is it really something we NEED? The banks say so, but don’t we live in the house without huge mishaps more often than not? Well, insurance claims are filed a lot! So I’m going to go over a few common scenarios that you may not know are that common. I am really trying to put your mind at ease for why we are required to have homeowner’s insurance and times you would need it.

You won’t have to cover the large part of the cost for unanticipated, but most-likely-to-happen repairs. If there is one thing no one can predict in life, it is nature. Say a natural disaster causes a tree to smash in your roof. Unless you have a very plush emergency fund, you may find yourself in sudden financial trouble if you have to make the repairs on your own. Nothing is cheap when it is done right and nothing done right is cheap. Aside from the tree, you probably have guests over. You are protected when you have visitors to your home. Whether it is a salesperson who shows up uninvited or your relatives or friends, what happens if someone trips and falls on your property and decides to sue you? Liability coverage is what will protect you from bearing the full impact of damages, including medical bills and lawsuits. Liability is the number one risk any homeowner bears today.

With insurance it is peace of mind, you paid a lot for your home most likely, it is a big part of your budget. Your investment into your own property is protected. Every little upgrade, repair and update you make while you own your property can potentially add to its resale value if it is covered. Your investment into your own property is protected. Also, an upgrade may be to run a business. With insurance, you can run a business out of your home without additional risk. The popularity of home-based businesses today is on the rise. More and more entrepreneurs are launching businesses out of their home offices, some of which have achieved quick success. But when you bring your business into your home, your potential liability increases along with your profits. For this reason, it becomes just that much more important to ensure you have a comprehensive homeowners insurance policy, complete with good liability coverage for future unknowns you may run into.

In conclusion, without sufficient liability insurance, you wake up every single morning and risk everything you have worked so hard to build. It is for this reason that some homeowners take out an additional umbrella liability policy as well. Talk to your real estate agent about good insurance companies. You can do your research as well. Most of the time, the companies Realtors work with have proven to be good due to the fact that they are being used in trust. By protecting your hard work and your investment, you protect your own future.

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