The Importance of Property Insurance
Costs of living around the country are increasing, and as a homeowner, it seems financially irresponsible to not purchase a household insurance. That being said, your home is the biggest and perhaps most costly investment you’ll ever make in your lifetime. Thus, it only makes practical sense to protect your investment with insurance. In fact, many homeowners around the globe are already doing so. Here are some reasons why this type of insurance is important.
Protection Against Property Damage. Property insurance offers coverage against many natural disasters including, but not limited to, storm, floods, fires, earthquakes, theft, and other weather-related damages. Regardless of your home’s size, location, and other security features that you may have added, no property is invulnerable to fires, floods, or burglaries. In some cases, the land your property is built in can also erode and send your home crashing down. Being a huge structure, homes have a lot of vulnerabilities; cover it with an appropriate insurance policy.
Protection Against Liability. A less known benefit of property insurance policies is its liability coverage clause. Many other forms of insurance policies including auto insurance include this provision. Sure, being a careful homeowner can help prevent a lot of accidents and injuries, but an incident could include your neighbours or your neighbour’s home. Liability coverage from your property insurance can help protect against these potentially costly incidents.
Protection For Your Art And Jewellery. For homeowners who have expensive jewellery, art pieces, or other valuable possessions in their home, ask your insurance provider about adding a floater to your property insurance. This add-on feature will pay out for any damages to your personal items. Keep in mind, though, that these add-ons only usually have a fixed amount that will be paid.
Protection For Commercial Ventures. If you decide to rent your property out to a third party, whether as a dorm room for college students, for families with kids, or for singles with pets, you are held responsible for any structural damages or personal injuries that they cause during the occupancy. In the event that your tenant gets hurt and files a lawsuit, the insurance may also offer some protection. Moreover, if you are caught in a situation wherein you need to file a lawsuit against your tenants causing damage to your property, property insurance could also pay out for that.
These are just some of the many things that a property insurance can protect you from. Note that not all insurance policies are cut from the same cloth. For instance, if you live in a neighbourhood that has historically withstood subsidence or flooding, then insurer may apply increased excesses or restrictions in cover.