Why Homeowners Insurance is Essential

 If you own a home, it’s likely your most valuable asset - and one you can’t afford to replace out-of-pocket if something devastating were to happen. Homeowners insurance is a financial safety net, offering protection against loss or damage to property. If there is a natural disaster, accident, or other catastrophe, it will help pay to repair, rebuild, or replace your home - including certain belongings or other structures on your property. Here’s why homeowners insurance is essential:

Covers The Home's Structure

Homeowners insurance covers the cost to rebuild the home's structure if the damage that occurs falls under the policy’s coverage umbrella. The amount of coverage on the policy determines how much the insurance company will pay toward rebuilding the house, so you want to make sure that amount is accurate. The insurance company should calculate the amount of necessary coverage for you. Damage to the structure of your home can be devastating, and homeowners insurance protects you financially.

Pays To Replace Belongings

A standard home policy also covers your belongings in the event of serious damage. Replacing all your belongings would add up quickly if you had to pay out of pocket. A homeowners policy ensures you don't have to go without the necessities and luxuries that you have inside your home. High-value items, such as artwork, jewelry, antiques, and furs, often need a rider to ensure coverage. The rider is extra insurance for that specific item attached to the regular policy, and is generally an inexpensive add-on to the premium.

Provides Liability Coverage

You don't intend for anyone to get hurt on your property, but sometimes accidents happen. While you hope you never have to worry about these issues, you need to err on the side of caution and protect yourself with the liability coverage afforded by homeowners insurance. Bodily injury liability coverage may help pay for your resulting legal expenses or the visitor's associated medical bills if you are found at fault. The liability portion of the homeowners insurance policy covers injuries others sustain on your property.

Fulfills Mortgage Contract

Most homeowners carry a mortgage on their homes. Your mortgage lender will typically require that you buy a homeowners insurance policy as terms of the mortgage before they help you secure the purchase. Lenders have a financial stake in your home, so they require homeowners insurance to ensure their investment is fully covered against catastrophic damage.

When it comes to purchasing homeowners insurance, you’re in the driver’s seat. As a buyer, you have every right to shop around for the best coverage and prices. If you’re looking to purchase homeowners insurance for a new home, or simply considering changing your current policy, contact Eric Kyer at Allstate. Eric is an Allstate agent serving the Dalton community. Give him a call at (706) 226-5240!