The Benefits of Homeowners Insurance
When you choose to forgo buying homeowners insurance, you assume the risks associated with potential damage to your house. The cost of repairing damage and replacing your home falls entirely on you in the event of a disaster. If you’re well off, this might not seem like a big deal, but most people aren’t in a situation where this option is realistic.
Many people forget homeowners insurance protects you against more than just damage to your home. It also covers your possessions and protects you against liabilities. If your house burns down, a self-insured homeowner is responsible for not just rebuilding the home but replacing the contents within it, too. But if you have homeowners insurance, it will help cover these costs.
In the event of a flood or tornado, your house might not be destroyed entirely. You could end up being responsible for having it demolished on top of being rebuilt, which will be an added expense.
Pocketing extra money instead of paying a premium to an insurer sounds like a great idea in theory, but it doesn’t always work out in the long run. The cost of your monthly premiums over the years could end up being less than what you’ll pay for rebuilding your home on your own.
Remember, the value and cost of your home won’t remain the same over time. Inflation could cause the value of your property to skyrocket shortly after buying your home, meaning if your house were destroyed, it’d cost you more money to rebuild it than you originally paid.
Self-insuring a home is a risky endeavor and could lead to serious problems should your home become damaged or destroyed.
You’ll Become Liable for Others
Self-insured homeowners don’t have liability coverage, which helps in case someone is injured. You may have enough money to rebuild your home after a disaster, but can you afford to pay for injuries sustained in your home? It’s not as simple as paying someone’s hospital bills.
A person injured in your home could suffer severe trauma requiring multiple surgeries or could die while on your property. You’ll become open to lawsuits not just from injured parties but their families, too. Often these cases end up costing homeowners hundreds of thousands of dollars between medical expenses, civil suits for emotional distress, and legal fees for all parties involved, if they’re found liable.
Paying a premium each month is definitely worth the extra security you’ll have in knowing you’ll be protected under any likely circumstance. If you have questions about which home insurance policy is best for you, give us a call today. We can help you compare policies and find the perfect policy for your home and for your budget.