Buying a house is the largest investment one makes in his or her life. It is one of the toughest tasks and involves a lot of planning, research, and savings. However, buying a house without home insurance defeats the concept of owning it. Most of us feel that investing in home insurance is a waste of money. But, with the increase in natural disasters and vandalism, it is a good idea to spend little money and avoid huge financial loss. This is where homeowners insurance comes into the picture; it protects your house and belongings from damages.

What is homeowners insurance?
It is a form of insurance policy that protects your property and possessions from losses and damages. This policy includes your residence, furniture, appliances, clothing, and other assets in your house. Homeowners insurance also provides liability coverage that protects you from a lawsuit against accidents on the property.

• This insurance policy covers both interior and exterior damage, loss or damage of personal belongings, and injury that occurred on the property.
• Every homeowner’s insurance policy has a coverage. This means the compensated amount by the insurer in the event of an unfortunate incident. The amount reimbursed by the insurance company is up to 70% of the total value.
• Any “Acts of Gods,” such as floods and storms are not covered under homeowners insurance. Similarly, an act of war is also excluded.

Benefits of homeowner insurance
Now that you understand what homeowners insurance is, let us take a look at the plus points of investing in it.

• Both interiors and exteriors of the house are protected
  Homeowners insurance not only protects your residence but also covers exteriors like the deck, shed, garage and fence. Additionally, you can opt for an add-on to protect your possessions like furniture, appliances, clothing, and other valuables.
• It provides a replacement cost
  Another great benefit of homeowners insurance is that it gives you the freedom to replace your damaged goods. You can claim an equivalent amount of money for your loss.
• It is not expensive
  Many of us consider home insurance as an unwanted expense, but the advantages it provides are far more than valuable than the money you invest in this policy. Home insurance is not at all expensive when you compare it with the cost of building or repairing your whole house. In the country, the average cost of insurance is $1,445 annually, but the premium you pay varies according to the state and the add-ons you opt for.
• Provides protection against lawsuits
  This insurance policy protects you against lawsuits as well. If you accidentally damage someone’s property or your guest faces an injury on your property, the person can file a lawsuit against you. But, if you are insured, the company will provide money for the damage or medical expenses, which protects you from such situations.

Things to keep in mind while getting an insurance

• Maintain proof of all insured items to get a claim
• You cannot claim any unauthorized construction
• Get a quote of reconstruction cost from a contractor at the time of renewing the policy
• A homeowners insurance policy does not cover the cost of land

Top insurance companies
Many companies provide homeowner insurance, but these providers are the top players in the industry

• MetLife
• Allstate
• Amica
• Lemonade
• USAA

Homeowners insurance not only protects you against damage to your property but also keeps your possessions safe and secure. And the best part is that the insurance premium is inexpensive compared with the benefits it provides. So, there is no reason not to invest in this insurance policy.