A homeowner’s insurance offers protection to the policy holder’s house and belongings in the event of a damage or loss. Most insurance companies offer standard home insurance policy that covers damages or losses for the homeowner’s property and belongings caused by smoke, theft, snow, ice and fire.
Here are some reasons why you need to buy a homeowner’s insurance:
- Lenders’ requirement. Most mortgage lenders require that homeowners purchase a home insurance. A lender will require you to submit a proof of insurance before completing a deal.
- Protection of possessions. If you have insurance, you can immediately repair damaged items or replace stolen belongings.
- Immediate repair of home. In case of damage on your house, you can immediately rebuild or repair it if you have insurance. A home insurance may also cover additional living expenses during the period that your house is being repaired. Most insurance policies cover home structure, personal belongings, additional living expenses, medical payment and liability protection.
- Liability protection. This insurance benefit protects you against a lawsuit for property damage or injuries that you or any member of your family may cause to other persons. Liability protection provision extends to payment for any court-related expenses such as court awards and legal fees.
- No fault medical policy coverage. This coverage in your policy protects you against liability claims by any person who is injured while he is on your property. The injured person can submit his medical expenses directly to the insurance company where you bought your policy. His bills will be paid and this will eliminate the inconvenience of having liability claim filed against you. This coverage does not apply to you or any member of your family.