Why Homeowner's Insurance Is Important

21 October, 2020
It's important your home is covered by a homeowner's insurance policy for any kind of problem. In this article, we'll discuss how to choose the best policy.

You’ve probably heard of homeowner’s insurance, but do you know what it covers? Insurance companies usually offer a wide variety of policies to guarantee the well-being of your home. So, below we’ll talk about the different types of homeowner’s insurance available.

There are different kinds and each one offers different conditions. However, one thing they all agree on is providing the customer (you) with peace of mind in any situation: an accident at home, a broken window, a water leak, a break-in, a fire, etc.

Choosing it is up to you. You must be clear about what the clauses are and whether you can negotiate the rates. Of course, the higher they are, the more benefits they include.

What’s the best type of homeowner’s insurance?

A diagram of what homeowners insurance covers.

There are so many insurance companies to choose from. These companies are becoming more and more competitive and are trying to set lower prices. Their goal is to have a good client portfolio.

If you’re in a financial position to take out insurance, we recommend looking for and making a specific analysis of the market. From there, you should carefully read the guarantees and considerations of each one and compare them.

This procedure requires patience and determination. Also, you should write down the advantages and disadvantages. You often don’t need to cover everything 100%. There are even those offering the possibility of personalizing the policy to your needs.

You’ll get what you want by looking and comparing.

Why homeowner’s insurance is important

A man putting out a fire hoping he has homeowners insurance.

Once you’ve carried out an exhaustive and detailed search, you must attend to specific aspects that concern your own needs. Therefore, you need to consider these 5 things:

  1. If you normally spend a lot of time away from home. For this reason, your house is left empty several hours a day and is therefore vulnerable to burglaries. Everything of value must be covered: jewelry, works of art, electronic devices, etc.
  2. A simple short circuit can become a serious problem. For this reason, you must include fire protection and assistance in the event of a fire.
  3. Breaking glass is an uncontrollable factor. You can break a table, a mirror, the ceramic stovetop, or a window. Furthermore, some companies offer a policy covering these objects as well, always with the inspection of an expert.
  4. Damp is another drawback. Whether due to bad weather or a broken pipe, it can damage the walls and ceiling. Generally, the repairs are included in practically all contracts.
  5. You use the appliances every day and sometimes they get damaged when you need them the most. There are homeowner’s insurance policies that also include a 24-hour repair service.

If in doubt – compare insurance policies

Some people working on a wooden table.

If you go directly to the insurance company office or if you call customer services, they’re going to try to get your attention and convince you to sign the contract as quickly as possible.

Today, different websites focus on comparing insurance. Additionally, they show rates and services. They even point out what you need and, from there, display the companies that most fit your needs.

Note – your home and vehicles should be included in the same contract. This way, the price is usually cheaper and, in the long run, you’ll save a considerable amount of money.

You must make a choice once you’re clear about your own preferences.

Don’t put your home at risk

An agent gifting the keys to a house and holding a small plastic house.

Incredible as it may seem, some people decide not to have homeowner’s insurance or simply choose the cheapest one. This can be a risk. You might think nothing will happen. However, an accident can occur at the most unexpected moment.

Therefore, your house must be covered against possible dangers. Choose full insurance if you can. It’s the best way to feel at peace and your home is safe.

 

  • AA. VV.: Vivir seguro: consejos para convertir tu casa en un hogar seguro, Barcelona, CEAC, 2007.