When it comes to protecting your home, it’s always best to expect the unexpected. A fallen tree, a house fire or a burglary; without homeowners’ insurance, these damages could cost you thousands out-of-pocket! Imagine the following scenario: John and Jane are neighbors. When a severe storm hits their neighborhood, they find that both of their homes have been damaged.
John has homeowners insurance.
When John assesses the damage to his home, he knows that this event is covered by his homeowners’ insurance policy. He contacts his insurance company, who sends an adjuster to assess the damage and provide an estimate for repairs. John’s policy covers the cost of repairing the damage – minus his deductible, which he can afford to pay out of pocket. He’s able to get his home back to its pre-storm condition and with minimal financial burden.
Jane does not have homeowners insurance.
When Jane assesses the damage to her home, she unfortunately does not have homeowners’ insurance to cover the cost of repairs. In order to fix the damage to her home, she will have to pay for the repairs out of pocket. This will cost her tens of thousands and she will need to drain her savings to cover the cost.
Having a homeowners’ insurance policy won’t prevent damage to your home or belongings, but it may help provide a financial safety net if the unexpected occurs.
