Some people might think that they no longer need homeowners insurance if they live in an older property and have paid off their mortgage. This is fundamentally incorrect, and the fact of the matter is that anyone can benefit from homeowners insurance, no matter how much money they might think they have in the bank.
Homeowners insurance is about a lot more than just money that will help you rebuild your home. It protects your overall financial security from countless liabilities associated with owning a home. Therefore, even if you no longer owe money on the property, you can still benefit exponentially from this coverage, and you should never consider dropping it for any reason.
Understanding the Scope of Homeowners Insurance
Most people think of homeowners insurance only as a policy that will help them rebuild their house following a fire, severe weather or act of vandalism. That is certainly true, but it’s only one part of the expansive benefits that a home insurance policy can offer.
While you might have had to carry home insurance for as long as you had a mortgage, the fact is that these threats won’t go away just because you have paid it off. Therefore, you always want your homeowners insurance to continue to offer you the necessary financial support in case of a devastating loss of property.
Plus, your homeowners policy can include many other benefits that aren’t related to the value of the dwelling itself. For example:
- Possessions insurance will help you cover the costs of damage to or loss of your belongings. It can cover furniture, electronics, clothing and countless other essential items.
- Liability insurance covers you in case you are accused of negligently causing bodily injuries, property damage or other harm to someone else who doesn’t live with you. This coverage will help you repay that party and cover any of your resulting legal fees as a result.
- Additional living expenses coverage helps you supplement the costs of dining, hotel bills and other essential services that you might have to pay if a problem occurs in the home and forces you to temporarily move out.
Further benefits can help you cover pet bite liabilities, damage cleanup, accidental (no-fault) medical payments and more. Therefore, by maintaining your coverage, you are a lot more likely to reap the benefits that won’t be available if you go uninsured.
Still, if you are concerned about how you can maintain coverage or rates on an older home, don’t hesitate to contact your home insurance agent for assistance. We’re happy to help you ensure that your policy continues to function optimally throughout the years.