Why You Need Home Insurance

Hey everyone! Happy Friday. Today I have yet another post on homes, but this one could be applied to renting as well of course. Yesterday I talked about whether a house is even a good idea for you, the other day I talked about steps to buying a house, and then recently I also talked about mortgages. I should probably start a blog series on this!

Today, I'm going to talk about why home insurance is important and why you should have it. Hopefully it is required and you already have it!

A lot of people don't factor the whole cost of the home they are thinking about buying though. While home insurance in general isn't very high (this depends on the value, location, etc of your house), but of course every expense adds up.

And when some people don't realize how much everything will be once it is all factored in, then they might try to find areas to skimp in.

I'm assuming that with most mortgages, it is required and already built into your mortgage payment (as mine is). But, most people might skimp a little in the area of home insurance. You might not think you need all or most of the coverage which is offered, or you might say your house is worth less so that your payment will be less.

Or if you have renters insurance, then you might not think you need it. In general though, it is usually cheap for renters and covers accidents and your belongings.

Home insurance can cover a wide range of events: burglary, earthquakes, fires, damage, etc. It can cover the outside, inside, whatever you want. But the minimal is usually the actual building (for homeowners insurance).

I used to work in clothing retail, and we would have families come in to shop around once a month, all because their house caught on fire and the whole family would need clothes. This was always extremely devastating, and because of this I have a very big fear of this happening to me. However, my nervousness is definitely another whole store for another day!

Another instance where insurance was important was when my friend's house was broken into (remember this post?). He was 100% reimbursed, and this made the burglary hurt a lot less.

Insurance is generally very cheap compared to other types of insurance. I believe my homeowners insurance is at around $675 per year. It used to be lower but I added earthquake insurance to it as well, and this only added an extra $33 per year to the total. So in general, it's very cheap! And you can find great home insurance quotes that suits your needs using a price comparison site (like ComparetheMarket.com).

Liability insurance on your house also covers a wide range of events. A dog bite, someone or something breaking an item of a neighbors, an accident on your property, etc. So this is generally a good thing to have as well.