Homeowner’s insurance is one of the only ways to financially protect yourself and your home from natural disasters, theft, fire, and any other circumstances that might damage your home. There are many different reasons why you need homeowner’s insurance. Below are our top 3 reasons why you should have homeowner’s insurance. 

1. Homeowner’s insurance protects your property.

The point of homeowner’s insurance is to protect your property. However, it protects much more than just your physical home. It protects your home and any attached structures, other structures like sheds, furniture, jewelry, and additional living expenses. 

2. Homeowner’s insurance protects you legally. 

Many homeowner’s insurance policies also protect you against legal litigation. For example, if someone is injured at your home and decides to sue you for damages, you may be protected by your insurance. Some plans offer personal liability and guest medical protection coverage. Personal liability is for a situation in which you or a family member cause damage to someone else’s property or person and are found to be legally responsible for paying for it. Guest medical coverage is when a guest at your home is accidentally injured and incurs medical bills. The insurance company will pay in both of these situations if you have the policy items mentioned above. 

3. Homeowner’s insurance is required by your bank. 

Many people who buy their home using a bank and mortgage are required to purchase homeowner’s insurance. Often, you are required to purchase insurance before you even close on your house. This protects the lender’s investment: your home. In some states, your lender is allowed to purchase insurance on your behalf and charge you for the cost. It is most likely better to choose your own insurance yourself. That way, you can pick the items that are most important to you and decrease coverage in other places to decrease your costs. 

What is Not Covered by Homeowner’s

There are many items covered by homeowner’s insurance, but there are some important caveats. For example, flood and earthquake insurance are separate from homeowner’s insurance, so you will have to purchase these items separately. Some other common sources of damage are not covered as well, like termites, rot, normal wear and tear, mold, and rodents. 

Homeowner’s insurance is a solid way to protect one of your biggest financial investments – your home. Call us at Redwood Agency to learn more today!