How Important is Homeowners Insurance?

importance homeowners insurance

Your home is one of your biggest assets, so it only makes sense to protect it. That’s exactly what homeowners insurance does – it protects your home and personal property and can provide the funds to rebuild in the event of a loss. 

Most mortgage lenders require you to have a homeowners insurance policy. If you don’t have one, your lender is allowed to purchase one and charge you. But it’s more beneficial if you purchase one yourself, since you can find a policy that suits your needs and your budget, like the coverage we offer at Lott & Gaylor Insurance

Homeowners Insurance: What It Covers

To understand why homeowners insurance is so important, it helps to know what it covers. Within a typical policy, you’ll find:

  • Dwelling Coverage
      • Dwelling coverage pays for repairs to your home and attached structures like the garage or deck if they should be damaged by a covered peril. 
  • Other Structures Coverage
      • If you have detached structures on your property, like a fence or a shed, and they are damaged by a covered peril, other structures coverage helps to pay for repairs. 
  • Personal Property Coverage
      • If personal property like furniture or electronics are stolen or damaged by a covered loss, personal property coverage will help to replace or repair them. 
  • Personal Liability Coverage
      • If you or a family member are responsible for injuring another party or damaging property, personal liability coverage can help to pay for repair costs, legal fees, and medical bills. 
  • Guest Medical Protection
      • If a guest is injured while on your property, guest medical protection can assist with the cost of their medical bills. 
  • Additional Living Expenses Coverage
    • If you cannot remain in your home after a fire or another covered claim, additional living expenses coverage may help pay for hotel bills or other temporary living expenses. 

Limits and Deductibles

All insurance coverage comes with limits. When you select the limits of your homeowners policy, keep in mind how much it would cost to rebuild your home and replace your belongings. This way, you can be prepared if you run into a loss or disaster. 

Deductibles are present with homeowners insurance as well. A deductible is the amount that you must pay out-of-pocket before your insurance benefits take effect. 

Investing in Homeowners Insurance
|While homeowners insurance can’t prevent disaster, it can help you recover if life takes a turn. To learn more about homeowners insurance or to get a free quote, get in touch with our team at Lott & Gaylor Insurance.

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