For most people, purchasing a home is one of the biggest investments you will ever make. For that reason, it only makes sense that you would want to insure that big investment. The question is: what coverages do you even need in a homeowners insurance policy? Here are the best reasons why you should get homeowner's insurance, or re-evaluate your current policy.
In order to figure out what kind of homeowners insurance policy you need, it helps to know what are some of the more common reasons why people have to file a claim against their policy.
Reason #1: Dog Bites/Attacks
If you have a dog, it would be in your best interest to make sure you have a homeowner’s insurance policy which covers bites and attacks from that dog bread. This is especially true if your dog is in your yard to keep people out of it. As long as you have signs posted and your dog is fenced into a certain area of the yard, your dog is not going to get in too much trouble for biting someone who comes into the yard.
Reason #2: Accidents on Your Property
Did you know that even if someone was on your property uninvited when they got injured, you could still be held liable for their injuries? This is assuming it is determined that you were found negligent and partly to blame for their injuries.
It is vital to make sure you have property liability coverage on your homeowners insurance policy when you purchase a home. You are financially responsible for people while they are on your property. If they get hurt, you can be sued and have to pay for their medical expenses. Having property liability coverage just ensures that your insurance provider foots the bill instead of you.
Reason #3: Natural Disasters
The kind of natural disaster coverage you have on your policy really depends on where you live. It doesn’t make any sense to have any form of hurricane coverage if you don’t live near water. Conversely, if you live in a rainy region of the country, it would be a good idea to have some kind of flood insurance.
Reason #4: Theft and Break-ins
Did you know that some insurance providers will only cover thefts and break-ins if a reasonable effort on the homeowner’s part was made to prevent the theft and break-in from happening in the first place?
This is like having auto insurance and getting your car stolen because you left it unlocked. You can file a claim against your automobile insurance, but they may not compensate you for a stolen car because you didn’t lock it. This is rear, but theoretically, could happen.
If you do not take a “reasonable amount” of security measures to protect your own house, your insurance provider could choose not to compensate you for damages done or things stolen.
The number of reasons why a homeowner could file a claim against their insurance policy is endless. The whole point of the policy is to pick up a bill that you cannot cover because something happened to your house. What kind of coverages you have on your policy (or should have on your policy) depends on your house, your income, and the environment you live in.
It is important to do what you can to limit the number of claims you file against your homeowners policy. Most insurance providers are likely to drop you if you file more than 3 large claims inside a span of three years because you become too expensive for them as a client.