Everyone knows they need a home insurance policy, but really, what exactly are they paying for? First of all, before going into exactly what a standard policy covers, you need to know why you are paying for insurance on your home. No one ever thinks anything bad is going to happen to their home – no one. However, accidents happen all the time. There are natural disasters, break-in's, fires, etc. There is always the possibility that something bad is going to happen, which is why it is imperative that every homeowner purchase a housing insurance policy.
The only downside is that because purchasing a homeowner's insurance policy is so deeply embedded into the minds of the human race in general, no one really stops to think about what they are purchasing. Once they are offered a good deal at what seems to be a good price, they sign up and make their purchase without ever reading what's included in their policy. Protection is protection, right? Not necessarily.
The standard home insurance policy may or may not include everything that you need. Most housing insurance policies include protection from the following: fire and explosion, wind and rain, the weight of ice or snow, theft, bursting water pipes, and falling objects. For some people, this is just enough. However, if the company you are planning on purchasing your policy from does not offer the very basic coverage, then it is in your best interest to find one who does.
Over time, purchasing home insurance may seem to be a huge waste of your time and money, and in many cases, it might be – especially if nothing ever goes wrong. The positive side of the coin is that you are protected from damage in the case that something does happen. Ultimately, you'll save a lot of money when and if something ever goes wrong.
Now, there is a chance that you'll run into a situation where you might have to purchase an additional policy, especially since the items included in your standard policy may vary depending on where you live. If by chance your home is located directly on top of a fault line, it's highly recommended that you purchase a policy that includes coverage from natural disasters – or at least earthquake disasters in general. Again, this may require that you purchase a separate housing insurance policy, but then again, think of the money it will save you in the long run.
Purchasing an additional policy and paying a little extra for the things you know you need is not always a bad thing. For example, if you're planning on moving your home, you'll need mover's insurance. If you live in an area where there is a history of dangerous flooding, flood insurance will save you from having to pay for costly repairs and possibly from purchasing a new home.
It's best that before you purchase a home or at least refuse to pay for home insurance that you consider the reasons why people purchase it. Remember that there is always a chance that something bad will happen. Most of the time, when accidents occur, they are not anyone's fault, which is why housing insurance is considered an absolute necessity.