It is necessary to insure your home for quite the same reason you need to insure your life and your vehicles. In the event of your home being destroyed or damaged, you will likely suffer emotionally and affect your financial standing. Thus, home insurance is the best way to help you mitigate the burden of losing your home. You need to insure your home against damages caused by natural disasters such as earthquakes, floods, typhoons, and landslides. You should not compromise on this since it can be costly to you. One of the benefits of home insurance is that it covers the constructions together with all the valuables you hold dear to you.
Most mortgage lenders require every homeowner to have a home insurance policy before the transaction is approved. It is in the interest of the lenders to ensure that their financial investments are well protected against any risks that might occur in your home. It is a requirement by some states for your lender to obtain it for you and it will more costly as compared to taking it yourself. It protects you against lawsuits in the event a person is insured in your property. Another thing you have to know is that in the event that the case does move to court, you will not have to worry about where you will get legal counsel from because your insurer is going to take care of that for you. Not everyone who has managed to save up to buy a house has extra money to spend on lawyers and legal processes which is why it will be much safer knowing that there is someone on your side who is willing to help you with this without asking you for more money.
In the event that you need to take a loan, using an insured house as collateral is much better than using one without an insurance. Banks are in the field to make money and they like knowing that if the house is hit by calamities or burned down there will be a way to get back their money without having to wait for ages to get it. This is not something a lot of people who have not taken homeowner insurance know of but if there is a guests who suffers injury in your compound will be taken care of by the insurance firm. Money can make people throw away common sense and even slight injuries can see you battle a lot of cases in court and if you are not prepared for such a thing then you need to ensure you are well covered. Instead of taking a chance with your home, be safe.