Whether you’re thinking of buying a house in North Phoenix or already in the process of purchasing one, Phoenix homeowners insurance is a term that you’re bound to come across.
To this day, many homeowners still question the necessity of paying for insurance. Your home is one of your most valuable assets. That being said, it’s only fitting that you take every possible measure to protect it and yourself from unforeseen circumstances.
What is homeowners insurance?
Your Phoenix AZ home insurance policy is a contract between you and the insurance company that guarantees coverage or compensation should any of the insured risks and perils occur. Your home insurance coverage can range from the basic to the extensive, depending on what extras and add-ons you wish to include in your policy.
A typical Phoenix homeowners insurance policy protects your home from loss or damages due to:
- fire and smoke
- wind
- lightning
- hail
Apart from damages to your home’s structural integrity, it may also cover:
- repair or replacement costs of other structures within the property
- replacement or compensation for damaged/lost belongings under the policy
- liability costs for injuries on your property or damages to other people’s property
Home Insurance Phoenix AZ – Is it required by law?
With car insurance being a legal requirement for owning a vehicle, you’d think that homeowners insurance is also required by law. As it turns out, home insurance is not a requirement to homeownership — unless you’re applying for a home loan.
It’s rare for mortgage lenders NOT to require some form of home insurance as they technically own part of the property with you. Your lender will want to make sure that you’ll have access to sufficient funds for the repair or you’d both lose a very valuable asset. Ensuring that the house is in its best shape for as long as possible benefits all the parties involved.
If you’re not paying for the house in full before moving in (which is the case for almost everyone), you’ll need a reputable Phoenix home insurance company to provide you with a policy that fits your needs and budget.
Why do you need a Phoenix home insurance?
Come to think of it; even if you buy a home outright in cash, home insurance is something you’d still want to have and invest in.
Here are the top three reasons why:
The policy protects your house and its contents.
If you’re like most people, financing your new home is likely to put a strain on your budget. Thus, there’s a chance that you might not have enough funds available if the worst happens and immediate repairs are needed.
Having home insurance will save you tens of thousands of dollars on out-of-pocket expenses should some unexpected calamity occur. Aside from protecting the physical structure of your home from disaster, your policy may also pay for or replace your furniture, appliances, and other precious belongings in case of loss, theft, or damage.
While there’s nothing good about destruction or losing your valuables, knowing that they will be fixed, paid for, or replaced soon somehow softens the blow.
Home insurance protects you from property-related lawsuits.
Accidents can happen anytime, and when they occur in your property, they could spell trouble for you. The medical fees will be enough of a burden, but what if the other party decides to sue?
Most home insurance policies have liability coverage to help you pay for medical, legal fees, and other liabilities for accidents or injuries that occurred within your property. The same liability coverage will also take care of the medical and legal expenses in case of damage to another person’s property.
It’s a small amount to pay for your peace of mind.
Most homeowners will tell you that the best thing about having insurance is the peace of mind it affords them. Bad things happen. And when they do, there’s almost nothing you can do to stop them. However, getting the necessary protection to safeguard one of your most significant assets and investments will make you feel more assured and confident about the future.
Home insurance is not something that’s going to be forced on you, but you’ll eventually find yourself wanting it. After all, it’s the best and most affordable financial defense you’ll ever have against the unknown.
Should you need more information about home insurance, or want a home insurance quote Phoenix AZ, Bennett and Porter is always ready to help.
Contact us now.