Is it necessary to take out a home insurance policy when you get a new home?
If you wish to acquire a new home for you and your family, then you will definitely be making a significant financial investment. Given the size of this investment, it only makes sense to protect it with an insurance policy that covers as many risks as possible!
However, is the insurance policy necessary at the time of purchase? Or are you doing it solely to cover the risk and your financial loss?
Home Insurance: Necessary or Not?
Before we get into whether home insurance is necessary or not, let's first look at the benefits of home insurance:
Security from natural disasters
We all see the disasters and consequences of climate change that has been sweeping the entire planet in recent years.
The consequences of water entering the space can be devastating. Other natural disasters such as earthquakes or floods can also cause serious damage. A home insurance policy provides extensive coverage for these types of damages, ensuring that you don't suffer a major financial loss.
Protection from risks arising from human actions
It is common to hear in the news about fires caused by faulty wiring or inadequate functioning of fire extinguishing systems. Lack of proper firefighting equipment can cause delays in controlling a fire .
Sometimes, manufacturers choose low-quality cables to reduce costs, or electrical connections are placed incorrectly. Fire safety systems such as smoke alarms and water sprinklers may also not be adequate. These factors can lead to a large financial loss in the event of damage to your home.
A home insurance offers extensive financial coverage for damages from such negligence and cost cutting. Although home insurance isn't required by law, the benefits we've listed are important, and can provide a financial safety net for your family and your property against potential damage.
Protects your valuable content
In your new home, you will bring things that fulfill your desires – from furniture and electrical appliances to various decorations that will make it aesthetically pleasing for you. You will also have personal items such as jewelry and artwork. Their value and importance are great and any damage would be a serious loss. Address the risk of losing these items with the cover provided by home insurance and in particular the contents insurance provided by insurance companies – that is, the ability to insure the items you want, once recorded, to protect them against risks such as theft and destruction.
Home insurance is mandatory if you will enter into a loan agreement!
If you buy your house with a loan or financing, then the insurance for your residence becomes mandatory, otherwise the bank will not approve the loan!
It is in the loan conditions that you sign that you will take out home insurance with all the necessary - for the bank - coverage.
Things to consider when buying home insurance
Here we have the best tips for finding the best home insurance for your new roof!
Always compare prices and offers
Through you have the possibility to compare prices and offers from the biggest insurance companies and find the most suitable home insurance for you!
Watch out for coverages
Examine the additional benefits available from each insurance company and compare both prices and of course the benefits of each policy!
Stay on budget
If you choose a policy with many benefits, make sure it fits your budget. Additional services can increase the cost quite a bit.
Buy online!
Although home insurance is not mandatory – except when there is a loan – we strongly recommend that you have an active home insurance policy.
With a minimum amount per year, you insure your investment and have peace of mind that whatever happens from the risks you have insured, you will be compensated by the insurance company and you will not have any financial loss or it will be limited to the minimum possible!