Home insurance offers a number of protections. For instance, dwelling coverage pays for damage to the structure of the house, while personal property policies cover any belongings that are destroyed due to fire, storms, vandalism, or theft. Further, personal liability insurance pays for medical treatments and repairs if you accidentally injure someone or damage their property. Here’s why these policies are so crucial.

Reasons You Need Home Insurance

1. Financial Protection

Home insurance protects you against financial catastrophe. For example, if your home catches on fire, you will only need to cover a deductible (which is the amount you must contribute before the insurance company will pay), and the insurer will take care of the rest of the rebuilding costs. In bodily injury or property damage liability cases, there is often no deductible at all.

2. Quicker Recovery

After a traumatic event like a fire, break-in, or damaging storm, it can be difficult to move on with your life, as rebuilding and repairs are costly and take time. An insurance payout will enable you to get back to your normal life quicker, since you won’t need to take out a loan or find other means for covering the costs.

3. Lender Requirements 

If you still have an outstanding mortgage balance on your house, your lender will almost certainly require you to have home insurance. As a lienholder on the property, they have a right to insist you protect their investment. However, avoid insuring the property for only the outstanding loan balance. This will cover the bank's investment but leave you unprotected if a fire or storm hits. Rather, have a professional provide an estimate for the cost to rebuild the house from the ground up and insure the property for that amount.

To discuss your home insurance options with an experienced agent, contact Consolidated Agency in Rochester, NY. They are an independent broker and have been serving their clients since 1988. In addition to home insurance, they also specialize in business and vehicle policies. Visit their website or Facebook page to learn more about their services, or call (585) 467-4110 to request a quote.