Insurance firms sell an array of products such as life insurance, home insurance, medical insurance, and auto insurance among other types of policies. Each one of these provides protection against loss to the insured against loss. In return, the insured agrees to make regular payments, which are commonly referred to as premiums. In most cases, individuals prefer to hire an insurance broker, to aid in purchasing an insurance cover. Besides, the insurance company agent also helps the client understand the merits of acquiring various forms of insurance policies. Here is an overview of the merits of home insurance policy.
Your Home is a Big Investment
Having a home is one of the most profitable investments that one can make. Homeowners can choose to sell their homes at a much higher cost than the buying price since the values of homes appreciate over time. This is contrary to assets like automobiles, whose value begins to decrease the minute they hit the road. Getting St. Catharines home insurance is, thus, mandatory to protect your financial investment.
Requirement by Lenders
In some states, acquiring insurance policies like the home insurance and auto insurance is not compulsory. Nonetheless, the majority of lending institutions and banks require borrowers to have home coverage. Typically, lenders want to ensure that their investment is protected in case of damages. Also, the lending party wants assurance that, the individual being loaned money, has adequate insurance to cover the amount of the advance.
Protection from Loss
The basic home insurance policy protects a home and its contents from the risk of being ruined by invaders, fire tragedies and severe climatic conditions like tornadoes. When your property gets damaged in a hurricane, the insurance company will cover the cost of rebuilding the home based on the current market pricing. Also, the majority of insurance firms offer extended replacement value insurance, which covers the cost of replacing household items if a catastrophe strikes. Nevertheless, you should talk to the firm’s insurance broker so as to identify the particular items covered by this policy.
Personal Liability Protection
Another merit of obtaining St. Catharines home insurance is that it provides protection against lawsuits. It is imperative to cover medical bills for persons who may get injured while on your property. If you have additional assets to protect, you ought to purchase extra liability coverage. Besides paying injured parties, the home insurance covers the cost of hiring a defence attorney in case anyone sues you.
Coverage for Special Circumstances
If your property is found in an area that is prone to floods or earthquakes, the standard home insurance policy might not cover damages resulting from such calamities. For this reason, you ought to purchase flood insurance or supplemental earthquake coverage, both of which are offered by private insurance companies. Furthermore, if you reside in an old home, the basic homeowner coverage cannot cover damages caused by sewers or drain backup. To insure your property from these mishaps, it is prudent to get the supplemental insurance policy.
Perhaps, the biggest reward from getting home insurance policy is a peace of mind. Homeowners can rest assured that in the occurrence of disasters, the costs of replacing, repairing and rebuilding are covered.