When you buy a house, most mortgage lenders require proof of homeowners insurance to protect their collateral. Homeowners insurance also protects you when something goes wrong with your primary shelter. In fact, many financial gurus claim the benefits of homeowners insurance far outweigh the cost of the premiums. K.L. Smith Agency, of Willimantic, CT, will help you understand all of the benefits of your homeowners insurance policy and make sure you’re fully protected.

Here’s why you need to purchase homeowners insurance:

• Your Mortgage Application: Lenders require applicants to carry homeowners insurance so everything related to the structure is financially covered. The bank is invested in your house until you pay it off, and they want to protect that investment.
• Security & Safety: Shelter that provides warmth, comfort, and a place to rest is a basic human need. Homeowners insurance pays for temporary shelter in the event of a fire or another natural disaster, so you never have to worry about going without a roof over your head.
• Building Coverage: Your building will be insured for its replacement cost. That way, you can rebuild or repair your home in the event of a major weather event or another type of damage.
• Liability Protection: If a visitor claims that he or she was hurt on your property and files a claim for medical expenses, your insurance can cover the costs. This protects your savings from being raided by a lawsuit, whether the accident was your fault or not.
• Your Personal Belongings: Your possessions are also covered by homeowners insurance. Your insurer may pay you to replace them in the event your home or belongings are destroyed. 

Whether you need homeowners insurance or you have a living situation that requires renters insurance, call K.L. Smith Agency of Willimantic, CT, at (860) 423-9294 for an insurance quote. Visit their website to learn more.