Your home is probably one of the biggest investments you will ever make. All it takes is one unexpected event to cause tens of thousands of dollars in losses and damages. Not only do you need to protect your home’s structure, but also its contents. Getting homeowners insurance is the best way to minimize financial losses and recover from all types of events.

What is Homeowners Insurance?

Homeowners insurance works like any other policy in that you pay a regular premium in return for financial protection. When a qualifying event occurs, you submit a claim for payment. There are also some differences in how home insurance works in comparison to other types of coverage. For one, you might need coverage to protect someone else’s money and not just your own.

Most home buyers will require a mortgage to pay part or all of the cost of their home. Even if you make a large down payment, you will need a lender to finance the balance of your home’s cost. Like you, the lender wants to protect their investment. Most will require you to sign an agreement to carry homeowners insurance throughout the length of your loan. This reduces the risk that you will default on your loan.

Consider what would happen if your house burned long before your mortgage was paid. Without home insurance, you would still be liable for the mortgage payments for the remaining term. Carrying the right amount of home insurance protects you and your lender from suffering significant financial losses.

What Does Homeowners Insurance Cover?

A standard homeowners insurance policy pays to repair or replace your home and its contents due to a covered loss. It typically covers theft, vandalism, fire, and damage from severe storms. Coverage for earthquakes or floods may also be available.

Standard homeowners policies also include liability coverage. This can protect you from getting sued if a visitor is injured or their property is damaged on your property. For example, someone might fall on an icy walkway or get bitten by your dog. Without homeowners insurance, you could end up paying their medical bills, pain and suffering, and the damages to their property out-of-pocket.

Why Should I Get Homeowners Insurance?

No one wants to think that something will happen to their home or belongings. But each year, thousands of homeowners experience damages and losses from natural disasters and from the acts of others. For example:

• The National Fire Protection Association (NFPA) reported 338,000 home structure fires of single and two-family homes in 2021. These fires resulted in $8,949 million in property loss.
• Fire and lightning claims are the most expensive, averaging $77,340 per claim.
• In 2021, the United States experienced the second-highest number of billion-dollar weather and climate disasters in the county’s record. According to the same report, almost one in three people in this country have been impacted by an extreme weather event during the last two years.
• Nearly half of all homeowners insurance claims are due to wind and hail.

Protect Your Property with a Homeowners Insurance Policy

Damage or loss to your home can be overwhelming. Protect your property and your belongings with the right policy for your situation. United Benefits P&C Specialists are here to help you choose a plan that is right for your needs. Fill out the form to get in touch.