Home Insurance Benefits You Should Know About
If your home is paid off, it may be very tempting to cancel your homeowners insurance. After all, you no longer have your lender on your back verifying that your coverage is active. While home insurance is not required when you own your home free and clear, the benefits of carrying home insurance significantly outweigh the costs. Here are just some of the home insurance benefits you must consider before you call your agent to cancel your policy:
Protecting Your Biggest Asset
If you call a local contractor to find out the cost to rebuild your home, think about whether or not you could afford to invest this money if your home was a total loss. The biggest home insurance benefit is that you are protecting your investment and ensuring that you can hold onto the asset even when it is totaled. The average homeowner cannot afford to fix their home on their own when it needs to be built again from the ground up. If you are forced to file a claim, you will have paid only pennies to the dollar that the insurer pays for repairs.
Replacing Your Belongings
You may be shocked to find out just how much all of the belongings you have accumulated over the years are worth. If a fire tears through your home or someone breaks into your home and steals your valuables, you are left with the burden of replacing everything on your own when you do not have valid homeowners insurance. Standard policies will provide 75% of your Dwelling Coverage to pay to replace your belongings.
Investing in Liability Protection
In today’s litigious society, you need to make sure that you are protected against suit. If someone is injured on your property, or you cause injuries away from your home, the injured party has the right to file a civil lawsuit. Without home insurance, you face the lawsuit on your own. Home insurers will pay for a lawyer and will defend you through every step of the process. If you are found negligent, your liability coverage will apply and you will not be forced to pay the settlement out-of-pocket.
These are just some of the many home insurance benefits you must consider. If you are never forced to file a claim, consider the benefit of peace of mind. Knowing you are protected is enough to put your mind at ease when you are away from your home or you hear about a friend who suffered a loss.
Disclaimer: This is for information purposes only and NOT a recommendation from Mills Insurance. Please contact a licensed insurance specialist to discuss insurance coverage’s and laws.