Save Money With Lower Home Insurance Rates!

Save Money With Lower

Home Insurance Rates!

Why do I need home insurance?

Think of the last time you drove your car, got sick, or even just went to work. What if you were in a car accident? What if your illness required medical attention? What if an injury prevented you from earning a paycheck? These scenarios highlight the importance of auto, health, and disability insurance. Now think of your home, arguably your largest investment, and imagine the financial ramifications of property damage or of someone getting hurt on your land. This example illustrates why home insurance is so essential. Simply stated, home insurance is property protection. But it's more than that. It's also required to secure a mortgage.

When you take out a mortgage, your lender views your home as collateral. For this reason, your mortgage provider will require that you purchase hazard insurance, which is one component of home insurance. Hazard insurance protects home owners against unintentional property damage mainly caused by inclement weather, fire, and theft. It can cover the cash or replacement value of the damaged items. Though hazard insurance is the minimum coverage required by mortgage companies, the liability part of home insurance is equally important. Remember the earlier reference to injury on your property? Liability insurance will cover you should such an incident occur.

Home insurance can put a sizable crimp in any budget often ranging in the thousands. Fortunately, the home insurance marketplace is highly competitive. If you feel like you are paying too much for your current policy and are interested in finding a lower home insurance rate, there may never be a better time to shop. After all, a necessary expense shouldn't have to be a pricy one.