It is necessary to insure your home for quite the same reason you need to insure your life and your vehicles. Remember that any destruction or damage to your home has both financial and emotional consequences. Therefore, home insurance policy will be of great relieve in such occurrences. You need to insure your home against damages caused by natural disasters such as earthquakes, floods, typhoons, and landslides. Nonetheless, insuring your home is very important despite your locality. Most importantly, other than protecting your home structure, all your valuable items are also included.
Most mortgage lenders require every homeowner to have a home insurance policy before the transaction is approved. It is in the interest of the lenders to ensure that their financial investments are well protected against any risks that might occur in your home. It is a requirement by some states for your lender to obtain it for you and it will more costly as compared to taking it yourself. It protects you against lawsuits in the event a person is insured in your property. Another thing you have to know is that in the event that the case does move to court, you will not have to worry about where you will get legal counsel from because your insurer is going to take care of that for you. Not everyone who has managed to save up to buy a house has extra money to spend on lawyers and legal processes which is why it will be much safer knowing that there is someone on your side who is willing to help you with this without asking you for more money.
You will be able to get higher amounts of loans using your house as collateral if you have insured it. Remember that even financial institutions take risks but they should not be insecure to the point where they lose everything if for some reason damages, fire or calamities strike your house. This is not something a lot of people who have not taken homeowner insurance know of but if there is a guests who suffers injury in your compound will be taken care of by the insurance firm. People, even your friends, can give you a run for your money in any way possible including suing you for the slightest thing and you need to make sure that you do not lose everything due to such a circumstance. Instead of taking a chance with your home, be safe.