Owning a home comes with a lot of responsibilities. One thing that can’t be overlooked is paying for a proper homeowners insurance policy.
Continue reading to learn a few benefits of homeowners insurance and to answer the question, “Is homeowners insurance worth the cost?”
- Natural disasters: Tornadoes, floods, fires and other natural disasters can happen in a moment’s notice. While an insurance policy won’t stop a disaster from occurring, it will cover the cost to make repairs, rebuild your home and replace your damaged goods.
- Theft: Sadly, home invasions are on the rise across the U.S. If you’re the victim of a break-in, your homeowners insurance policy can pay to replace any stolen goods or make necessary repairs.
- Lawsuits: You can actually be sued if someone is injured while they’re on your property. A homeowners insurance policy protects you against lawsuits by paying for medical bills and attorney fees if you happen to be sued.
- Loss of use: You may not be able to live in your home for a while if you’re affected by a natural disaster—that’s where loss of use coverage can save the day. This coverage helps pay for things like hotels, food and travel expenses while your home is being repaired or rebuilt.
- Mortgage requirements: When customers ask us, “What are the benefits of purchasing homeowners insurance?” we often tell them that it’s required if they have a mortgage. Banks and other lenders require homeowners to carry a certain amount of insurance, since it’s the lender’s money on the line if there are damages.
How much homeowners insurance do I need?
So is homeowners insurance worth the cost? Absolutely! But the question is how much insurance you actually need. The answer varies from home to home, but here are a few things to consider:
- Dwelling coverage: Your dwelling coverage is what helps pay to rebuild or repair your home or any attached structures, like a garage or deck. Dwelling coverage should equal your home’s replacement cost based on building costs, not your home’s price. An insurance agent will be familiar with the estimated cost to rebuild your home.
- Personal property coverage: From appliances to clothing, your personal property applies to everything inside your home. Carry enough coverage to replace the cost of all your belongings. Any higher-end or valuable goods may need separate coverage.
- Liability coverage: The liability portion of your homeowners insurance covers you if someone is hurt on your property. A few of the most common liability claims are dog bites, falling trees and injured domestic workers. We recommend carrying as much liability coverage as you can afford.
- Loss of use coverage: As we touched on above, loss of use coverage pays for expenses when you’re unable to live in your home. The recommended coverage is anywhere from 10 to 30 percent of your dwelling coverage.
Get your quote today
Now that we’ve covered the benefits of purchasing homeowners insurance, it’s time to get your quote. Contact our team at Harvey Sarles Insurance Agency today to get a policy quote or to learn more about your homeowners insurance options.