Why Do You Need To Insure Your House?

By Author: Marcus Stalder
Total Articles: 491
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For most citizens their home is the most valuable asset the loss of which would be a financial disaster. Just imagine seeing your house destroyed and not being able to repair or rebuild it with your current funds. This would land you and your family on the street with no place to go. And that's exactly why insuring your house is a must if you don't have the additional savings that would protect you financially from such disasters.

Of course, there aren't so many cases of people seeing their homes burn down (still, with the wildfires affecting some states in the last couple of years it has become quite a common thing), but it's definitely not the only way your house may be damaged or destroyed. Things like gas explosions, windstorms, flood, earthquake and vehicle collision are very common events that can seriously damage any house. Even robbery can put significant damage to your house apart from the loss of specific valuables - the burglars will typically force their entry by breaking a door or a window. And some of them have an affection for breaking things just for the fun of it. So damage from burglary can sometimes ...
... be more significant than that of a natural or industrial disaster.

If there's a leak in your water pipe it's your responsibility to fix it, yet the damage delivered through the leak can be significant and that's exactly when you need home insurance coverage. Just imagine having the leak during the winter season - the structural damage could be very serious and there's even a risk of getting your house partially destroyed (the roof may go down, or your entire pipe system could freeze cutting you from water supply). That could be especially unpleasant if you've been away from home for the holiday season and discovered your entire house covered with ice upon your return.

What can also be paid through home insurance? Lightnings, windstorms, falling trees, social riots, industrial calamities and explosions. If such things occur near your house and it gets damaged or destroyed then you may rest assured that your policy will pay for the damage done. Even if your house is damaged by the actions of "malicious persons", as insurers prefer to call vandals and hooligans, then your house will also be repaired by using the coverage from your home insurance policy.

Standard home insurance policies also provide coverage in situations that may become litigious. For example, a visitor gets bitten by your dog or gets injured while repairing your ceiling - the policy will cover the medical costs and if the person decides to file a court suit then it will also cover the legal costs for you.

Having your house insured is definitely a great idea if you really want to protect your loved ones financially. Moreover, if you're financing your house through mortgage then the lending institution will require you to insure your house. That's why having a valid and adequate home insurance coverage is really a good idea for any responsible person.