Why do you need real estate property insurance? Is it really necessary to pay more out of pocket for property you already own? Do I even need it in this nice neighborhood my property is situated in?

As a real estate property owner, your home is probably your most important and valuable asset. That’s why it’s important to keep it secured and safe from any damages incurred in the future.

One way to safeguard your property is to buy a comprehensive real estate property insurance package or policy.

It might be costly at first, but when you look at the big picture, it’s a small amount to pay for the security it gives you in the event something happens to your home leading to huge financial losses.

But are there additional benefits you can gain from getting real estate property insurance? That’s what we’ll discuss in this article

What is Real Estate Property Insurance?

Real estate property insurance protects or covers you for any damages that your home will come across in the future.

It’s as simple as that.

As for how much it will cost you, real estate property insurance costs an average of around$1,319 a year or $110 a month. This may seem costly at first but considering the protection, it gives you from huge financial losses, this is a relatively small amount.

And who can get it? Anyone who has property can get real estate property insurance. In fact, we highly advise doing so as soon as you buy any piece of property.

Extent of Property Insurance Coverage

So, what do you get out of your monthly payments?

As mentioned above, it protects you from huge financial losses due to damages to your property.

What’s Covered in Your Policy?

Depending on your insurance company, everything inside your property line is covered within your real estate property insurance policy. That includes the following:

  • Gates and perimeter fences
  • Garage, main house, kitchen, and other components of your home
  • Your backyard (especially if you have landscaping done with backyard ornaments)
  • And everything indoors (including furniture, household items, jewelry, etc)

Basically, anything you declare as part of your property can be included in your real estate property insurance as main components and/or peripherals. After declaring the items you want included, the insurance company then draws up the estimated value of your assets and bases your total insurance policy’s price or monthly payments on this.

As for the policy coverage, damages caused by faulty or broken furniture, or sub-standard peripherals such as leaky pipes and damage incurred over time due to age, are not included.

However, these types of damages are covered:

  • Vandalism (including damages caused by civil unrest or riots)
  • Extreme Weather Conditions
  • Fire and Explosions
  • Damages caused by vehicles
  • Acts of God (including volcanic eruptions and hurricanes

Should any of these happen to you, the repair fees will be shouldered by your insurance company as stipulated on the insurance policy coverage you took out. Take note that if you excluded some conditions, they may not be covered due to it being outside of their policy coverage.

Included General Liability Coverage

General liability coverage is often included as part of real estate property insurance to cover damages from injuries or harm to other people.

If for example fire that originates from your home extends over to an adjoining property, general liability insurance will help cover the expenses that arise from that.

This type of insurance also covers physical or bodily harm to others. Lastly, reimbursement for stolen or damaged property within your building falls under this.

As long as proof of coverage is presented, reimbursement should be easy.

Additional Coverage

Additionally, there are several more conditions where your insurance can and can’t cover certain accidents or damages within your property.

One example is home-based businesses. Let’s say for example you’ve turned your home into a repair shop for cars and other items for people to come by. This will not be included in the coverage of your insurance.

Rather, another separate title or property coverage is needed, specifically a business policy to ensure the property is covered.

Moreover, if your house is left vacant for a minimum of 30 days, your property insurance is therefore immediately cancelled by the company.

This is because the house is left unprotected and vulnerable to dangers mentioned earlier in the article and thus, creates another set of regulations within the policy documents.

It’s important that you know what and what can’t the property insurance cover. This can prevent any accidents that can happen not covered by the insurance and make sure that other types of damages can be covered by the insurance, reducing any fees fleeing from your bank account.

Benefits of Property Insurance

Even though property insurance can’t cover everything inside and within your property, you will still need it to secure your property in the coming years.

Let’s take a look at what other benefits your property insurance can give you:

It Helps Secure Your Property and Valuables

The primary goal of your property insurance is to keep your home secure from suffering huge financial losses due to damage that might occur in your house. This includes vandalism, theft, explosions, etcetera. Ensure that the types of damage included are listed within the scope of your policy’s coverage.

Gives You Peace of Mind and Security

Knowing that your property is protected by an insurance company gives you the security and peace of mind that should anything happen, you won’t have to suffer massive amounts of financial loss.

Affordable Protection

Real estate property insurance is affordable whether you purchase it outright or pay for it in monthly installments.

Before taking out real estate property insurance, you should do your research and shop around to get the best-priced policies offered.

Temporary Shelter

Should your property experience massive amounts of damage leading to it becoming uninhabitable, your insurance company can provide you with a temporary place to stay until everything is sorted out. Again, not all insurance companies offer this outright. You may have to check the liner notes and see if that condition exists within your policy’s coverage.

Financial Compensation

Imagine if your house is not insured by property insurance, then all of a sudden a huge fire burns it down to the ground including all of your valuable possessions.

Property insurance makes sure those are secured and safe for reimbursement. As a result, you get to keep your financial position and stability afloat amidst the destruction of your home.

Conclusion

Buying real estate property insurance is the most sensible thing you can do after buying a lot. It helps to protect your home from massive financial losses due to damages.
Basically, what we’re saying is: getting property insurance will ensure that you have a peaceful and relaxing life.