Should I Get Home Insurance?

Home insurance may seem like just another expense to add to your ever-increasing list of mandatory monthly expenditures. With the rising cost of living, you may wonder – should I get home insurance? If you wonder about the value of paying for a home insurance policy, answer the following questions:

• Would you be unable to afford to replace your home if it burned to the ground in a fire or was washed away in a flood?

• Does your mortgage lender require you to have home insurance to fulfill the terms of your loan?

• Do you live in a high crime area where you could be a victim of burglary or vandalism?

• Could a crisis, natural disaster or unforeseen event happen to your home at any time?

• Are the contents of your home so valuable or original they would be impossible to replace if you lost them?

If you answered yes to any of the questions above, you need to have a home insurance policy or you could find yourself financially and personally devastated in the face of a crisis.

You should make sure you have building insurance and contents insurance so you have all the coverage you need if a fire, flood, explosion, earthquake or other event occurred that caused damage to your home and possessions. Building insurance will cover your home structurally, the cost to rebuild your home and the surrounding property you own. Contents insurance covers any possessions that are not fixed to your home such as appliances, electronics, clothing and furniture. Contents insurance also covers you against liability in the event someone makes a claim for getting injured on your property.

By minimizing risk, shopping around and making few claims, you can keep home insurance premiums down so they remain affordable. Installing a burglar alarm and maintaining smoke alarms are good ways to minimize your risks and insurance premiums. You can get the best rates by comparison shopping and only buying the cover you need.

Unless you feel you can afford to replace everything you own including your home and property, it is a good idea to get a home insurance policy.