Your home is probably the biggest purchase you’ll ever make and your largest investment. Still, it’s vulnerable to many risks, including fires, severe storms, flooding, and burglary. You can legally own a home without carrying homeowners insurance, but it’s probably required by your lender. Still, there are many good reasons to buy a San Diego homeowners insurance policy.
1. It’s Required by Your Lender
Most lenders require homeowners to carry homeowners insurance as long as they’re paying on the mortgage. Home insurance protects the bank’s investment because it ensures the home will be repaired or replaced if something happens to the home.
2. It Pays for Temporary Living Expenses If You Can’t Live in Your Home
Imagine this frightening scenario: your home is damaged in a fire and it’s no longer habitable. You know your homeowners insurance will pay to restore your home, but now you have nowhere to live for the time being. Homeowners insurance also includes “loss of use” coverage, which means your policy will pay for you to relocate while your home is being repaired. Your hotel, meals, and other living expenses will be reimbursed, typically up to 20 percent of coverage for your home.
3. It Protects You from Lawsuits
When most people think of homeowners insurance, they think of coverage for disasters and theft. Your policy also offers another valuable form of protection: liability coverage. If someone is injured on your property, you will benefit from limited liability insurance that pays for a legal defense and the injured person’s damages and medical expenses. Without homeowners insurance, you’re personally liable for damages if someone falls at your home or is bitten by your dog.
4. It Pays to Replace Your Belongings
Homeowners insurance doesn’t just cover your home. It also covers the contents. If your possessions are damaged, destroyed, or stolen in a covered loss such as a disaster, fire, or burglary, your policy will pay you the replacement cost or actual cash value of your belongings. You typically have personal property coverage up to 70 percent of the level of coverage on your home. If your home is insured for $200,000, that’s $140,000 in personal property coverage.
5. It Protects Against Theft and Burglary
If your home is broken into, your homeowners insurance reimburses you for the replacement cost or actual cash value of all items that were stolen from your home. Your policy will also cover repairs or replacement for any items the burglars broke or damaged, such as a window, front door, or furniture.
6. It Protects Against Loss and Damage to the Home Itself
If your home is damaged by a natural or manmade disaster, including fire, hail, and severe storms, your insurance policy will pay to repair or replace your home. Your policy can protect against a wide variety of losses, such as roof damage due to a fallen tree or heavy storms, a kitchen fire, hail damage to your shingles, and an overflowing washing machine.
For additional information on home insurance, reach out to the insurance experts at Altra Insurance Services. We also offer affordable and reliable renters, commercial, motorcycle, and car insurance in San Diego. Call (800) 719-9972 today for a complimentary quote.