The average US homeowner will spend $1,393 on home insurance in 2022 (that’s just under $120 a month). If that doesn’t seem like a lot to you, wait for this catch: inflation and fuel prices are nearing record-breaking heights. Monthly expenses are already growing much quicker than usual.
If you’re looking to save some extra money for gas, food, or clothes in the future you may be asking yourself “is home insurance required”? This handy post will give you everything you need to know how you benefit from home insurance, and why it’s best not to gloss over it.
Is Home Insurance Required?
A good home insurance policy opens the door for many practical and financial benefits and protects you from the most painful damages. Finding coverage is also really easy, you can get home insurance with Cole Harrison just by clicking on our link.
Being Covered Offsets the Greatest Risks
Homeowner’s insurance often covers way more than just the dwelling. Depending on your plan, your insurance can also cover your belongings inside the house, repair costs when the building sustains damages, and living expenses when extensive repairs force you out of the house.
Post pandemic repair prices are way higher than they used to be. The lumber in your house is now 32 percent more expensive than in 2020, and the price of steel has risen by 131%! These kinds of increases have made repairing with cash unaffordable for most Americans, having home insurance protects you from financial ruin in these cases.
Displacement and Legal Costs
In the event that serious repairs drive you and your family out of your house, home insurance also covers your living expenses while you’re displaced. Your insurer also covers any costs you may incur if someone is injured on your property.
Planning for Your Future
Emergencies like property damage or injuries can wipe out your savings, and home insurance can stop this from happening. However, there are more long-term financial benefits to being covered. Banks and other financial institutions require you to have home insurance before you can take out a mortgage.
When you take out a mortgage, whoever lends you the money also has a stake in your asset. The insurance on your home doesn’t only protect your interests, but also the interests of the bank whose money is tied up in your asset. If you’re planning on taking out a mortgage or refinancing your credit, you need home insurance.
What’s Inflation Got to Do With It
The United States is experiencing an inflation wave that’s almost as bad as the one in the 1980s, and that has many implications for all goods and services, including insurance. The price of homeowners will probably rise as well, and getting rid of the extra expense may seem very attractive because of the price hikes. This could end up losing you more in the long term.
Stay Wise, Stay Insured
Is home insurance required? Absolutely! Going through life without home insurance exposes you to many different kinds of financial ruin while blocking certain financial opportunities in the process.
Getting insurance and staying insured can only have great benefits in your life. Check out the rest of our lifestyle articles to see what else you could find useful on your journey.