We all know the importance of having quality auto insurance and even a few of us understand the importance of renter’s insurance when it comes to the stability of our financial futures. But many overlook the importance of quality homeowners insurance, electing to take out only the cheapest policy in order to remain in compliance with the terms of their mortgage and give them a basic level of coverage that will help in the unlikely event of a major disaster. And while it is true that less than 10% of homeowners file a claim against their homeowner’s insurance policy in a given year and many never file a claim on their insurance for the entire duration of their ownership, have you stopped to wonder what might happen if you didn’t have quality homeowner’s insurance?
In order to understand the impact of not having homeowner’s insurance or having substandard insurance, it’s important to understand what insurance really is. The technical definition of insurance states that it is the equitable transfer of risk of loss, from one entity to another, in exchange for payment. This means that you are transferring the risk of a loss to your property to an insurance company in exchange for paying your monthly premiums. This means that if you experience a loss, you won’t have to pay for it, as long as it is a loss that is covered under your insurance.
Losses come in many different forms: fire, water and smoke damage, acts of God, earthquakes, storms that damage or destroy your home, etc. Every insurance policy has a list of losses that they cover from fire to storm damage to vandalism to theft. If you don’t have insurance or your policy doesn’t cover the loss that you have just experienced, you will be on the hook to make the necessary repairs to your home out of your own pocket. This could potentially be devastating to your personal finances as well as your life. In addition, if you have a mortgage, your mortgage holder has the right to demand that certain repairs are made so that your home’s value remains steady in the event you default and they have to sell your home.
Insurance gives you the means to replace all that can be replaced if you experienced a loss. Having a quality insurance policy means that you are covered up to a higher dollar figure and that more losses are covered. This keeps your personal finances in the clear as well as your mortgage company happy because they know that their security collateral remains safe against damage and a loss of value. In addition to your structures, homeowners insurance can cover the replacement of your things inside your home, which can add up very quickly in the event of a fire or flood.
The truth is that while there is a high likelihood that you will never experience a catastrophic loss of your property or belongings, you never know what can happen. Having homeowners insurance Danbury CT will ensure that no matter what happens, you won’t have to worry because your home, your belongings and other items can be replaced. Talk to an experienced local insurance agent about home insurance Danbury CT and get a free homeowners insurance quote.