States themselves don’t mandate that you have homeowner’s insurance, but your mortgage company does, and you should carry it to protect your investment. Homeowners insurance protects your house if it gets damaged and is worth every penny when considering what it covers. The expense is a small one that can prevent financial disaster in the future. Here are the top five reasons you need to purchase a homeowner’s insurance policy while living in California.
Protection from lawsuits
A standard insurance policy protects against lawsuits if someone is injured while on your property. Someone can slip and fall, break a bone, or even get bit by a dog. Your policy will cover medical expenses, damages, and can also aid in court costs if the situation escalates. You can choose whether to buy the minimum liability or extra for additional peace of mind.
Natural disasters
Natural disasters occur whether you’re prepared for them or not. Living in California, you’ll need to have fire protection included in your policy, especially with the increase in dry conditions. Ensure that you’re carrying enough insurance on your plan to cover the cost of your home and what’s inside it. Some types of natural disasters require additional coverage and policies, such as earthquakes and flooding.
And there may be times when you have to get legal representation involved. According to Walkup, Melodia, Kelly & Schoenberger, clients need help “to maximize their insurance policy recoveries while also…dealing with issues surrounding the process of rebuilding or relocating, depending upon their needs.” Natural disasters are just things that can’t be controlled but that require financial help and coverage for damaged homes, cars and other such necessities.
Secure your possessions
The items in your house are included in the premium for your home insurance policy. The minimum threshold usually isn’t enough protection. You can choose to have replacement cost coverage or the actual cash value. Replacement cost coverage is a bit higher but gives you the amount of what the item costs new, which can be beneficial since things depreciate over time.
Loss of use
If your house becomes unlivable due to damage, your insurance policy can help you with relocation costs. They will reimburse you for meals, hotel, and other living expenses you incur. An average plan covers 20 percent of your overall coverage for loss of use expenses.
Robbery and theft
If your house is damaged due to theft, or thieves take property, your policy will reimburse you based on your coverage type and amount. Keep a detailed inventory of items that you’d want replaced to make the process go more smoothly if you are victimized.
It’s evident that homeowner’s insurance is an absolute must for anyone who owns a home. Since your house is likely the most expensive thing you own, you should protect it from loss. You’ll have peace of mind and reassurance knowing that you have one less thing to worry about.
