Do you currently own a home? In 2016, homeownership declined to only 63.4%.

Are you looking to understand what exactly homeowners insurance is and why it’s important? Read on to discover the answer to the question, do I need homeowners insurance, and find out why it’s so beneficial.

Is Homeowners Insurance Required?

You might be wondering, do you have to have home insurance? If you have taken out a mortgage, it often requires insurance as well. Your mortgage company will require to see your proof of insurance before they’ll approve your mortgage request.

Depending on where you live, you might be required to have flood insurance as well as homeowner insurance. If you don’t have insurance, your lender can charge you the cost of it and buy insurance for you. It’s best to search on your own since a lender can go with a more expensive option.

1. Protects Your Home From Loss

While the answer to your question, do you have to have homeowners insurance might be a no, it’s still a good idea to have since it’ll protect your home from loss. It protects your home in case of natural disasters such as hurricanes, fires, tornadoes, etc. It’ll help cover your home in case of natural disasters so you’re not worried about covering the bill.

It’s a good idea to look into your policy to make sure that you have damages on a replacement cost basis. Understanding home insurance is vital, so go over all of your questions with your insurance provider to see different coverage options.

2. Protects Your Belongings

It protects your belongings as well as your home. You’ve collected items over the years in your home that can be valuable. If you’re faced with loss, damage, or theft, your personal property can be protected. While it’s terrible to have an item stolen, it’s great to have that peace of mind knowing you have insurance to cover some of the loss.

It can also protect your personal items left outside of the home such as your phone, bike, or laptop.

3. Protects Your Liability

When someone comes over your home, if they get injured on your property, medical fees can be covered by homeowner’s insurance. Medical fees could be quite pricy with bodily injury, so it’s always a good idea to have policy coverage. This form of coverage is what’s known as personal liability.

4. Additional Living Expenses

For unseen circumstances that don’t allow you to stay in your home such as a fire, you could be covered. Insurance might help cover temporary living costs, like staying in a hotel.

5. Other Structures

Your policy might pay for the replacement or repair of detached structures on your property. Some examples could be a shed or fence. Always speak with your insurance agent to see what your policy covers.

Limits and Deductibles

Coverage has limits which means the maximum number your insurance policy will pay toward a claim. When going over coverage limits, keep in mind things like replacing your items or having to rebuild your home. Many policies have deductibles as well. The deductible is the amount you must pay before your insurance policy will pay toward it.

It’s a great way to have a safety net in case of an unforeseen situation. Speak with your insurance agent about the different policy options and deductibles or visit Hamilton Home Insurance for some direct quotes.

Do a Home Inventory

If you’re looking to save on insurance and only cover what’s really necessary, you can do what’s called a home inventory. You’ll go from room to room in your home, and document every piece of personal property. While it can seem tedious, it’s important to document and know how much coverage you really need.

Ensure you’re as detailed as possible and include the value, serial number, make, and model of items. Take photos with a camera of your items. You can use a spreadsheet to keep a list of all of your items. It’s also a good idea to keep a copy of the spreadsheet outside of the home. Email them to yourself, place them in a safe box, or keep them with a friend or neighbor who you trust.

If your home is ever burglarized, this list will help you keep track of what’s left behind and what’s gone. This will lead to a quicker process with your insurance claims adjustor or the police.

Cost Saving Tips

Before cutting costs by losing certain lines of insurance, it’s vital to do a home inventory. While during a depressed market you might want to reduce the amount of coverage, keep in mind it’s there for reconstructing the home. Reconstructing the home will cost more than the current depressed value of your home.

Think about increasing your deductible to save on insurance costs. If you decide to raise the deductible, keep in mind you’ll be responsible for small and medium-sized issues. File as little as possible because the more claims you have, they can cancel or raise your premium.

Before canceling flood insurance, some areas require you to keep it. Also, see if you’re in a flood map to determine whether you can expect a flood or not.

Asking the Question, Do I Need Homeowners Insurance?

When you’re asking the question, do I need homeowners insurance, the answer will almost always be yes. While it’s not always a requirement, it’ll protect your home and personal items.

Would you like to learn more about lifestyle and real estate? Check out our other articles.