Purchasing your home may have seemed like enough money spent, so why would you buy homeowners insurance when you could spend that money furnishing your brand new home? Many people think that a disaster will never happen to them, until it does. When your home suffers damage, you will likely be left to pay for repairs out of your own pocket if you never purchased homeowner’s insurance.
For most people, buying a home is the biggest financial investment they will ever make. Such a large investment necessitates a certain amount of care and caution. It would be unwise to ignore the risks and potential losses you could suffer as a homeowner. Buying insurance isn’t a major financial commitment, but it is something you can do to keep yourself and your family a little bit safer, and to ensure your peace of mind.
In today’s blog post, our attorneys at Arnold & Itkin outline just a few of the top reasons why you should consider purchasing comprehensive homeowner’s insurance. Remember: If you have a question about a homeowner’s insurance claim, speak with a Texas insurance claim attorney from our team.
Five Reasons to Buy Homeowner’s Insurance
Here are five reasons why you should go out and buy homeowner’s insurance today:
- The first reason you should buy homeowner’s insurance is so as to ensure minimum hazard coverage. This is the most basic level of homeowner’s insurance. Most mortgage lenders will actually require all their clients to purchase at least this level of coverage. Minimum hazard insurance will consist of protection in the case of fire, wind, hail, and possibly theft damage. Terms will differ from region to region.
- The next step people usually take is to pay for multiple lines of coverage. This is the second reason why you should buy homeowner’s insurance. This level of insurance will not only cover structural damage, but will also cover areas such as your personal property and injuries.
- What happens when you are personally liable for the damages, at least to some extent? A third reason to purchase homeowner’s insurance is for the liability coverage, which will cover you even if the damage or injuries are your fault.
- Have you ever considered what would happen if your wood floors were damaged? What about your most cherished family heirloom? These things can only be covered by personal property insurance. This type of insurance protects your personal belongings and valuables.
- The last and final reason to make the next step and purchase a comprehensive homeowners insurance policy is that it is surprisingly affordable. Even when premiums start to rise, you should think twice before dropping lines from your policy. On the day your property is damaged, you may be glad you kept the comprehensive coverage.
Homeowner’s Insurance Claim FAQ
What would happen if a homeowner has no homeowners insurance?
If a person does not purchase homeowners insurance for their home, they will be responsible for paying for anything that may get damaged on the inside or outside of their property. While it is true that property damage is rare, when it does happen, it can be extremely expensive to fix. Even a seemingly small bathroom leak could cause water damage that costs thousands or even tens of thousands of dollars to fix. As a homeowner without insurance coverage, you would have to figure out how to pay for repairs out of your own pocket. Most people simply do not have that kind of money available.
Can I own a home without homeowners insurance?
There is no law on the books that says you must have homeowners insurance to own a home. Banks and mortgage companies, however, will typically require proof of insurance coverage before loaning you the money to purchase your home. You may even default on your mortgage loan by failing to have homeowners insurance coverage, which could put you at risk of facing steep fines and even foreclosure. Lenders want homeowners to have insurance because it covers their losses as well.
What does homeowners insurance cover?
Every policy is different, but homeowners insurance generally covers any damage to the interior, exterior, or structure of your home in the event of an accident or disaster. Standard homeowners insurance policies often do not cover earthquakes or floods, and they may not cover wildfires either. If you live in an area that is prone to any of these events, you should consider getting additional coverage.
You can extend your homeowners insurance policy to include the things inside your home, such as furniture, electronics, and even jewelry. You can also add things like additional living expenses (ALE) to cover the cost of a hotel or rental home while your house is being repaired. Finally, you may be able to have your homeowners insurance policy cover any lawsuits against you if you are sued for an accident or injury that occurs on your property, like a slip and fall or a dog bite.
How much homeowners insurance coverage do I need?
Your lender may have specific requirements for homeowners insurance coverage, but the general rule of thumb is that you will need enough coverage for the value of your home and your possessions. Then, you can determine whether you want to get additional coverage for disasters like floods, wildfires, or earthquakes, for additional living expenses, or more.
Why is it important to have homeowners insurance?
If you don’t have homeowners insurance and disaster strikes, you stand to lose everything. This might sound a bit dramatic, but it doesn’t necessarily take a Category 4 hurricane or a full-blown tsunami to cause so much damage to a home that a property owner has no chance of paying for repairs. Pests, water, fire, and storms can cause serious damage that requires extremely costly repairs. The right homeowners insurance policy will make sure you don’t face financial ruin because Mother Nature has shown her might or you’ve run into a bit of bad luck.
Ask Our Insurance Claim Attorneys
If you have a homeowners insurance claim or have suffered from bad faith insurance practices, you can get help from a Texas insurance claim lawyer at our firm. Our team can help you understand your rights and options so that you move forward with confidence. At Arnold & Itkin LLP, we fight to see that policyholders get the coverage they paid for, because we are passionate about ensuring that justice is done. Our goal is to protect the rights of the individuals we represent. You can choose Arnold & Itkin LLP and have peace of mind right away, knowing that your case is in good hands!
For more information, or to arrange for a free evaluation of your case with our team, please don’t hesitate to contact a Houston insurance claim attorney from our firm today by dialing (888) 493-1629.