With homeownership comes great responsibility, so they say. To enjoy living in your own house, you have to pay your mortgage on time, file property taxes, and carry out periodic maintenance work. You also have to think about all the future possibilities, because your home is vulnerable to all kinds of damage. A wrecked home is not a livable one.
Your house is susceptible to destruction by pest infestations, fire, extreme weather, and flooding, to name a few. A burglar could break into your home and steal your possessions, a car can plow through your front door, or your house could be swallowed up by a sinkhole. You might think that outrageous things only happen to other people, or you only see them on the news. Still, property crimes and accidents are a genuine possibility for any homeowner in any neighborhood.
Acquiring homeowners’ insurance is a way to protect yourself and your home from the threat of property damage. Insurance helps you cover costs to repair and restore your house in case of a crime, accident, or natural disaster. From 2014-2018, 5.6 percent of insured homes in the United States had a claim, according to the Insurance Information Institute (III). It means that one in 20 houses filed a claim due to property damage from fire and lightning, wind and hail, theft, or water issues.
Aside from the fact that you may not have enough funds to cover your repairs in case of a disaster, these are the things that might happen if you don’t have homeowners insurance:
You’ll have trouble selling your home
A home without insurance will raise questions with potential buyers. They may wonder why you didn’t feel the house was valuable enough to insure, or if a guarantor found it was uninsurable. Your buyer may also be forced to purchase insurance with a higher premium, which may discourage them from picking your property.
You won’t be able to replace the things inside your home
Homeowners insurance doesn’t just cover your home’s structure, but its contents as well. If you don’t have cover for heirloom possessions or high-value items inside your home, once they are stolen or destroyed, you won’t even be able to recover a portion of their financial value.
You could default on your loans
Your mortgage lender will require you to get home insurance when you apply for a loan. The policy needs to be renewed annually or depending on the terms of your provider. An uninsured house is a bigger liability to a lender. If your policy expires without a new one in place, they may force you to get a new policy from a different provider at a higher cost or opt to send your mortgage into default.
You can be personally liable for injuries that happen on your property
Material things can be repaired and replaced, but accidents involving people could cause permanent damage or loss of life. According to the III, the most expensive homeowner insurance claims are from fire and lightning, which in 2018 was around $73,000 per claimant. However, the average cost of healthcare for non-fatal injuries can range anywhere from $67,000 to $220,000. If you don’t have homeowner’s insurance, you could be paying for these expenses out of pocket, on top of any possible lawsuits that the injured person might file and repairs you need to make on your property.
Going without homeowners’ insurance is a serious risk. Any cash you may have saved up could evaporate in a string of unfortunate circumstances, and these days, there are so many of them that the chances of them happening to you are quite high. While insurances protect you from events that may or may not occur, one thing is for sure, you don’t want to find out what happens if you don’t have it.
Are you covered with homeowners insurance in Delray Beach, Florida? We can help you cover any personal and commercial needs so you can rest easy. Our insurance and investment group has been serving individuals and businesses in Delray Beach for years. Contact us for more information.