True Homes understands a new home is the largest investment many homebuyers make. It’s not just a place to live and grow; it’s also a wealth-building asset.
We sometimes hear buyers of new homes grumble about homeowners insurance, which is typically required with home financing. If only they didn’t have to pay the extra cost, then perhaps they could afford a bigger home or have more money left over for upgrades.
For those reluctant insurers, True Homes offers the following homeowner tips, which show the major ways home insurance can help you.
Home Insurance Can Protect Your Investment
The first and most obvious way home insurance serves homeowners is by paying for repairs or replacement after damage occurs to the home. Policies also cover other structures on the property, such as a detached garage or shed, as well as the contents of the home and all structures.
Homeowners typically think of losses that could come from fire, storms, water leaks or theft. Other less likely scenarios can include volcanic eruptions, falling objects (including aircraft) or riots. Floods and earthquakes are not typically covered by home insurance. A separate policy is required for these instances when home financing is secured in flood zones or certain areas of the country.
Without the benefit of insurance, homeowners must pay for repairs or replacements out of pocket. If the worst happens, homeowners may lose their entire home investment. With insurance, they typically pay a deductible (amount set in the policy), with the insurance company picking up the rest of the tab.
Home Insurance Can Protect Your Guests
Accidents happen! And there’s no bad feeling quite like having an accident occur in your home or on your property, especially if that accident leads to an injury that requires medical care for a guest.
Your child’s best friend breaks an arm on your trampoline? Your elderly aunt slips on the ice on your walkway? Your dog bites the neighbor who came to visit? Fortunately, your home insurance helps pay for any medical costs.
Home Insurance Can Protect Your Finances
If the scenarios above, it’s possible that a guest might also sue for damages related to the injury. Home insurance includes personal liability coverage to help in these instances, too. Personal liability insurance coverage usually extends to anyone in the household (including most pets), as well as incidents that occur away from home.
Home Insurance Can Provide a Place to Go if Your Home Is Out of Order
If your home can’t be lived in after an event, home insurance covers the cost of housing your family until repairs are complete. This loss of use coverage may pay hotel fees or rent on a similarly sized home nearby.
Home Insurance Can Help You Sleep Better
In a world of uncertainties, losing your home investment can be one to keep owners at night. We hope these True Homes homebuyer tips help you see how home insurance, whether required by home financing or secured on your own, can take those worries away. New homes bring plenty of the fun kinds of worries – paint colors, furniture choices and housewarming parties for starters. We wish you hours of fun focusing on those instead.