You’ve probably heard it before: Not having insurance can cost you, big time. Why, exactly, is a lack of coverage so expensive? Is skipping on a home insurance policy really that dangerous, fiscally? To understand the biggest benefits of homeowners insurance, you’ll need to brush up on the biggest costs of not having homeowners insurance. Let’s check them out.
Cost One: Disaster Repairs
It’s impossible to predict the future—especially when Mother Nature is involved. Standard homeowners insurance policies protect homeowners in the event of unforeseen flooding, hail, lightning, wind or fire damage. For example, a single heavy storm may be enough to damage your home and cost a lot of money. To pay for repairs, you’ll need decent insurance. Otherwise, you’ll be paying out of pocket.
Cost Two: Reconstruction Costs
Construction costs add up quickly. Between local hiring, construction by square footage, waste removal and home-specific renovation expenses, a single construction project can cost a lot of money. If something happens during the construction, then that could cost you a lot of money. Why put up with the stress? The proper adjustments to your home insurance policy can cover the costs.
Cost Three: Your Mortgage
Many lenders require a certain amount of homeowners insurance coverage while you’re paying your mortgage off. This is so important, in fact, that it’s possible to lose potential lending if your policy lapses. To avoid the risk of defaulting on your mortgage, it’s advisable to have comprehensive coverage.
Cost Four: Legal Liability
If there’s an injury on your property, you’ll likely need to cover their medical costs. As a homeowner, you’re legally liable for any injuries which occur on your property due to negligence. Homeowners insurance pays for valid claims against you, up to its limit. Without it, out-of-pocket liability costs can be devastating. However, this coverage doesn’t insure you for your own or your family’s injuries.
At the end of the day, comprehensive coverage is well worth the price-tag. Consider your home’s future, and protect your wallet from predictable and unpredictable expenses alike.
Also Read: Do I Need Flood Insurance