by Amanda Mears
It's easy to dismiss insurance as an unnecessary expense when times are hard, but by opting to live without home insurance, you are actually putting yourself at risk for a huge financial disaster. Thanks to programs that let you compare rates, finding a home insurance plan that fits your budget has become less painful. If you're still not convinced about the benefits of insurance, keep reading.
Hazard insurance on your home may not be enough. Before you finalize a mortgage loan, most lenders will require that you purchase basic hazard insurance. This will cover most accidental or environmental damage done to the house and some items in your home, like furniture. However, this basic insurance does not extend to cover business assets, art, or jewelry. If you have valuable assets in the home, you should consider getting a more comprehensive home insurance that protects these belongings and can better protect your home if you live in a high-risk area.
Extended home insurance can ease your mind. Your home is probably your largest asset, and by not insuring it against accident, you put yourself and your family at risk. If you live in a mild climate that typically doesn't experience natural disasters, you may think purchasing a more expansive insurance policy is expensive and unnecessary. However, an extended home insurance policy that includes liability insurance goes beyond that to protect you from lawsuits if someone is injured on your property. To ensure that your financial situation stays stable and you always have a roof over your head, look into getting a policy that covers more than you think you need.
Renters insurance protects your personal property. Most people who live in an apartment don't think about home insurance because they don't own the home they live in and because the landlord's insurance policy covers the structure itself. However, many of these policies do not cover the loss of the renter's belongings in the case of flood or fire or other damage or loss. If anything happens to the structure you live in, it's typically covered by the landlord. However, if you're renting a home or apartment, you may want to look into renters insurance. This type of home insurance covers your personal belongings if they are lost to fires or natural disasters and can even protect against theft. It can also cover your liability or losses if something goes wrong in the place you rent and you or someone else is injured there. Renters insurance can assure that you don't have to bear the full financial burden of losses you may suffer as a renter.