Your home is probably one of the biggest investments of your life. Your life savings are spent on buying and making a home. You would want to have a backup plan in case any major damage is done to your home,  it might be by vandalism or by a catastrophic event.

A homeowner insurance is a type of property insurance which covers both the outside of the home and all the contents of that home. Having a  homeowner insurance is probably the best way to secure or reduce any damage that may have been caused. Having a homeowner insurance policy is a crucial aspect of home ownership. Here is why a homeowner insurance policy is a must –

Catastrophic Event

Homeowner insurance is actually also referred to as hazard insurance. Reason being homeowner insurance policies covers both hazard insurance as well as liability insurance. This type of insurance policy protects you against the damage done by catastrophic events such as flood, tornadoes, fire or earthquakes.

Approximately 250,000 homes are destroyed every year by earthquakes causing a financial loss of about 100 million. Depending on your insurance company, you might need to purchase an addition to the homeowner policy to cover for any earthquake-related claims.

Liability Coverage

Liability coverage is a part of homeowners insurance policy. Liability insurance is very helpful if an accident happens on your property. Suppose your friend slips in the bathroom and breaks his foot. Now his medical bills will be covered under the homeowners’ policy.

If a limb of a tree on your property falls on a vehicle parked on street, you will get the benefit that all fines and court charges will be paid by homeowner insurance. Liability coverage only comes into play if you are found guilty of an accident. It can also cover for your legal representation, in case you get sued

Rental Policy

Including a rental policy is the best way for a tenant to ensure his/her belongings will be repaired or replaced in case of a break-in, fire or natural disaster. This policy also insures the repair or replacement of your furniture, clothing and other household items. Many tenants simply presume that a landlord’s insurance policy will actually cover for their personal belongs.

The landlord might be responsible for the damage to the building or apartment but a tenant is responsible for his/her own belongings. In case of a break-in or a fire, it is the tenants who suffer most of the loss which is why a rental policy is very much recommended. Contact Georgia’s Finest Insurance as they can help you determine the right insurance policies and different coverage options as per your needs.

Getting Mortgage

If you plan on financing your home with a mortgage, it is mandatory in today’s age to have a minimum level of home insurance. Take your time to study and understand different insurance policies, before your lender intimidates you to buy an insurance through a carrier of his own choice at extremely high rates. No insurance policy is the same.