The Need for Homeowner’s Insurance


You might think “why do I need a homeowner’s insurance policy?” well you need one for the same reason you have a car and a health insurance. That is if something like an earthquake or natural calamity were to occur, you would be reimbursed for the exact value of your home. The major reason to have a homeowner’s insurance because it helps with the financial support in order to buy a new or repair the current house.

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While buying a homeowner’s insurance there are several factors you need to consider ensuring that you would actually get your money’s worth and not just wasting your finances on premium amounts that are just using up your money for absolutely no reason. So, here are certain factors that you must ensure are covered under your home insurance policy.

Hazard Insurance

Having a hazard coverage ensures that your house repair costs are taken care of in case it were to get destroyed due to certain instances like fire, storm, theft, vandalism and similar threats. The hazard insurance policy ensures that you are covered for the cash value of the damages or the replacement value of the damaged objects.

Liability insurance

The liability insurance policy is not specifically for you, but for the damages caused to others. For example, if someone were to get hurt due to the design of your fence or door the liability insurance would cover all the medical expenses required for them.

Mortgage Requirement

The is one of the biggest reasons that you should a homeowner’s insurance policy. It is not for you, but for the mortgage companies that require it. This is if you have taken any sort of loan on the house. Remember to use the home loan EMI calculator and tally with them and check to it that all the amounts are justified.

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