Why Is Home Insurance Important? By Melvin Richardson, eHow Contributor Share Print this article When you purchase a home, the mortgage lender requires you to have insurance as soon as the purchase is complete. There are many reasons for home insurance. A homeowners insurance policy provides many benefits and gives a homeowner a peace of mind knowing that his/her home is insured. Its always a good idea to check with several insurance companies to do a rate comparison. Have a question? Get an answer from a Handyman now! Other People Are Reading Does Homeowners Insurance Cover Water Leaks? Why Is Insurance Needed? Protection Having your home insured provides protection if an accident were to occur. Your insurance company will make sure the repairs are handled after you have paid your deductible. Costly Repairs Without insurance, your home could be damaged by a fire or some other occurrence, and it would be very costly for a homeowner to repair on his/her own. Sponsored Links AAA Auto & Home Insurance Find Insurance as Reliable as Our Roadside Service. Get a Free Quote. AAA Forced Insurance An insurance company will automatically provide insurance from its own firm if a homeowners insurance policy expires. These types of policies are costly to the homeowner and may increase the mortgage payments because the premiums are added to the mortgage balance. Dwelling/Contents The dwelling coverage will be enough to replace the home if it were burned to the ground. The contents can also be covered. A policy can cover furniture, jewelry, stereo equipment, a bedroom set, a stove or refrigerator, for example. Contents are insured based on a percentage of the dwelling coverage. Claims If an accident happens and the home is damaged, a homeowner has to file a claim with the insurance company. Once a claim is filed, the insurance company will normally issue a check to the contractor doing the repairs. Sometimes the check will be issued in portions as the work is performed. Sponsored Links Read more: ehow/facts_5017145_home-insurance-important.html#ixzz2l6uF3y6q
Posted on: Tue, 19 Nov 2013 16:40:41 +0000
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