Owning a property is one of the biggest steps in people’s lives. But although it’s an exciting journey, it can also be overwhelming due to the many things they need to accomplish first before sealing the deal.

One of the vital steps in becoming a new homeowner is to secure property insurance. Since your new property is one of your most precious investments, you should make sure that it’s protected. In this article, we’ll discuss some of the benefits of having property insurance.

1. Coverage from the Damage Caused by Natural Disasters

When it comes to natural disasters, including hurricanes, typhoons, and earthquakes, you can never be so sure when they’ll occur. So, whether your property is located in an area where natural disasters rarely occur, you should still secure property insurance.

Although you may not get the full price of the damages from natural disasters, some repairs and replacements are still covered, depending on your premium. However, there are some damages, like mould, that even though some think are minor damage, aren’t still covered.

So before availing of property insurance, you should be aware of the coverage and claims that you can get once you encounter damages caused by natural disasters.

2. Protection Against Fire and Smoke Damage

In case of fire, you can still claim financial assistance to repair or replace your property. Aside from the damages from the fire, it also includes the smoke damage. Although the coverage most homeowners would like to avail includes 100% of the amount that has been damaged, around 80% or more would also suffice.

Unfortunately, no matter what your coverage is, there are still some fire damages that aren’t covered by your insurance. Although you may be entitled to repair, the amount of replacement may not be included in the coverage.

3. Burglary and Theft Protection

Other damages that are usually covered by most property insurance are theft and burglary. If someone stole something from your property, you should report it to the local authorities and your insurance provider. You may also contact your insurance adviser to guide you with the filing of insurance claims.

Meanwhile, since the replacement of a stolen item may not always be included in the coverage, you can avail of the hybrid policy that compensates for any damages or replacements of the items stolen from your property. However, you might need to pay for additional coverage since it‘s more comprehensive.

4. Liability Coverage

One of the most popular benefits of having property insurance is the liability coverage. It covers the medical and legal expenses associated with accidents that happen on your property. For instance, if you have visitors on your property while you’re remodelling, and they encounter an accident, there’s a chance that they may sue you depending on the injury they’ve acquired.

On the other hand, even if they don’t want to settle things in court, you should be able to pay for their medical expenses. Unfortunately, if you don’t have liability coverage attached to your property insurance, you’ll need to pay for the medical expenses out of your pocket.

5. Complete Mortgage Lender’s Requirements

Is your mortgage or home loan already approved? It’s not yet final if you don’t satisfy the requirements. One of these requirements is to prove that you have pretty insurance. If you don’t have an insurance policy by the deadline of submission, there’s a huge possibility that you’ll lose your property.

Usually, the mortgage lender’s reason for requiring property insurance is that you should have financial assistance to replace your property in case of various accidents. So, in case you fail to continue paying your dues, they can easily retract the property ownership from you.

6. Provide Temporary Living Expenses

Another perk of having property insurance is that it covers temporary living expenses. It includes the cost of your rent, food, and essentials in case you need to repair or replace parts of your house. And it’s not just for the homeowner, but also your whole family.

Of course, since the assistance is only for temporary coverage, you may receive the assistance for just a couple of months up to a year. Unfortunately, if the repairs on your property aren’t done yet by the given time, you might not be able to receive further assistance.

7. Having Peace of Mind

Aside from having financial assistance, another benefit of having property insurance is peace of mind. Although having insurance doesn’t necessarily mean that your property is safe from any harm, it can lessen your worries since you know you have financial assistance in case anything bad happens.

However, before availing of any property insurance, you should consult with your insurance adviser to make sure the coverage suits your needs and preferences. In addition, you should be aware of the claiming policy, so you won’t encounter problems in the future.

We hope this article helps you get started on getting to know more about the benefits of property insurance. If you want to share your thoughts about this, don’t hesitate to comment below!