While many homeowners are required to purchase insurance as part of the mortgage process, they aren’t the only individuals who should have home insurance coverage. Renters and cash-buyers may also want to consider adding a policy to their financial portfolio. Consider these three reasons why everyone should have appropriate home insurance.
1. To Limit Liability
Even a minor injury can lead to major medical bills. Unfortunately, you may be responsible for costs of care and any legal fees related to an accident or injury that happens at your home. You can choose to hope that never happens, or you can protect yourself by purchasing a home insurance policy. This applies to renters as well, particularly if there is negligence on the part of a tenant.
2. To Replace Belongings
There are countless ways your personal belongings can be damaged, destroyed or lost. Vandalism and theft are common examples, as are fire or water damage. In many cases, home insurance Newark DE will even cover personal belongings that are stored away from the covered property. If you use a storage facility or routinely keep items in your car, this could be a major benefit.
It is often helpful to use a checklist to take an accurate inventory of all personal property. Be sure to take pictures or videos to provide additional documentation of any valuables or unusual items.
3. To Rebuild and Repair
Rebuilding or major repairs are often what people think of when they consider a homeowner’s policy, and this is one of the most significant portions of your coverage. Be sure to purchase coverage that will pay for full replacement costs instead of an insured value or the purchase price, since fluctuations in the real estate market can otherwise leave you seriously underinsured.
Home insurance can be a valuable asset for individuals, regardless of whether they own their home or not. In addition to paying for structural repairs, it can also limit liability and help cover the cost of replacing personal property that is damaged or stolen.