Secure Your Big Assets with Homeowner Insurance Policy

Everyone dreams of one day owning a beautiful home. It is way beyond a mere materialistic possession – a home is a place where the heart belongs, a place of our emotional connection and family  – it is our nest of peace.  When you have your dream home, you need to protect your dream as well. Homeowner insurance secures your home (along with your other possessions that your home contains) in the face of fires, theft, disasters, or other accidents.


If you are still not ready to spend a little money on insurance to save your big assets, I have some reasons to convince you.

Why should You Purchase Homeowner Insurance?

Have you recently bought a home? Then, you must be well aware of the sky-high expenses one needs to bear in order to purchase or build a home in the current market.  In many cases, people invest every single penny they have to get their dream home. What would you do if a heavy rainstorm comes and damages your roof? Repairing or replacing a roof will not be a friendly expense. Besides, where will you live during such an unfavorable situation? If your home is covered by a homeowner insurance, then you may receive “loss of use coverage” that will pay for you to stay somewhere else in the city until you get your house repaired.

People are prone to spend money on furnishing their new home and often overlook the importance of purchasing an appropriate homeowner insurance policy. It’s a tendency common in most of the people.

Once decoration is done, we take a breath of relief and think that now our house is complete while it’s not in reality. You are spending money on building your home, purchasing luxurious furniture and many other kinds of stuff. But everything can be destroyed in the fraction of a second… in the face of a sudden disaster or mishap. With a single insurance policy, you can save not only your home, but also your valuable possessions contained in the home. When your home is covered by a standard homeowner insurance, you will get support in replacing your damaged belongings.

Additionally, your garage, greenhouse, fence, and any other property/structures within the covered area will be protected by your insurance policy. Though homeowner insurance is not mandatory by the law, like auto insurance, banks or other lenders require a policy if you ask them to approve a loan/mortgage.

A Few Things about Homeowner Insurance

  1. A standard homeowner policy will not cover damages caused by floods and earthquake. You may buy individual policy meant for flood or earthquake.
  1. There is a limitation on how much compensation you will get. If you have certain valuable items, such as jewelry or artwork, You may need to pay a little extra per year in order to insure them for their total replacement value.
  1. If someone gets injured within the area of your property, you might be sued by him/her for their medical expenses. A homeowner insurance covers these liabilities as well.

Types of Homeowner Insurance

There are several homeowner insurance policies to choose from. Most important five types of homeowner insurance are structure coverage, personal belonging coverage, liability coverage, added valuable coverage, and flood insurance. Before investing in a policy, you should do research or work with a trusted agent or broker.


Apart from these, you need to know about other features of the policy such as: guaranteed replacement cost coverage (insurer will cover rebuilding, no matter how much the cost is), and extended replacement coverage (offers coverage that provides  almost 125% of the insured value).

How Much Coverage do You Require?

You should buy a homeowner policy that covers the entire rebuilding and furnishing cost. When you are going to build a home, ask your builders to provide you an estimate of what it would take to rebuild. It will help you understand how much replacement coverage you will need. You should be sure to point out any unique or expensive details that would help you add to the replacement cost.

Again working with a licensed expert might be the best way for consumers.

A Final Takeaway

It is very important to understand that homeowner insurance is not a luxury, rather it’s a necessity. Would you ignore your health insurance needs? Never! Then, why don’t you pay attention to your big assets like a home and your valuable belongings contained by the home? Prevention is always better than cure. So, please don’t wait until a mishap breaks down. Protect your dream home with a standard homeowner insurance.

Need some more information about homeowner insurance? Write to us and get the best answers!

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Arnold Smith

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