Why Do I Need Homeowners Insurance?

By McMurter Team of McMurter & Associates posted on Monday, August 10, 2015.

I have car insurance, life insurance, disability insurance, critical illness insurance and health insurance. You mean I need more? Homeowners insurance covers fire, theft, liability along with other potential losses.

Diane and Rick have purchased their first home and have been informed by their real estate lawyer that their next step is to connect with an insurance broker to get home insurance coverage.

When Diane and Rick were told they needed home insurance, on top of all of the other costs associated with buying and owning a home, they felt overwhelmed. They asked questions like "Why do we need home insurance? What coverage is optional?" What coverage do we absolutely need?"

Besides having home insurance to protect perhaps the biggest investment that you will make in your life, your mortgage lender will insist on seeing your home insurance policy and you will need it in place for your closing date. The lender's concern is that if there is a total loss and the house is destroyed, the value of the land alone will not be enough to protect their mortgage.

If you're lucky enough to buy a home without a mortgage, you should still have home insurance coverage in place. If you face a claim, without house insurance you will absorb a total loss on your home and the contents within your home as well as any personal liability to guests who may be injured while on your property.

Diane and Rick wanted to connect with a trusted insurance provider that understood their needs, and could provide the coverage they needed at the right price.

Jeff Skelton, an Insurance Broker at Roughley Insurance Brokers Ltd., explains many homeowner insurance protect policy holders and their families from loss or damage caused from many different occurrences, such as:

· Fire, smoke

· Lightning

· Windstorm, Hail

· Burglary or Theft

· Water Damage

· ... and many more

Home insurance is a product unique to each individual's needs. There are certain coverages of home insurance that you must purchase, but other features are optional to you that can depend on your situation. Your insurance provider can and should explain all of the options available to you.

Jeff suggests that having a comprehensive, all-risk home insurance package is the best way to protect your investment. This coverage will provide you will guaranteed cost replacement on the building, as well as replacement cost on contents within the building. Keeping in mind items such as jewelry, sporting and electronic equipment need special consideration, to name a few. Not all homeowner insurance packages can provide this level of protection, it is important to ask.

Diane and Rick met with Roughley Insurance Brokers Ltd. and were satisfied that they got the best homeowners package to suit their needs and to protect their biggest investment.

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To contact McMurter & Associates for all of your Real Estate lawyer needs or if you have a question about the home buying process, please contact us.