Why Do I Need Homeowners Insurance?

Whether you're buying a new home or you've already paid off the mortgage, you may have wondered about the value of home insurance. 

Your house is most likely one of your most valued assets. In a variety of ways, homeowners insurance protects your investment — and you. 

Here are some of the key reasons it's important to consider having homeowners insurance. 

Dwelling coverage

If your home and any attached structures, like a garage, are damaged by a covered peril, dwelling coverage helps pay for repairs. 

The coverage you need is usually calculated by the square footage of your house and what it would cost to rebuild your home.

This isn't always your home's market value.

Personal property coverage

Personal property coverage pays to replace certain belongings, such as furniture and electronics, that are stolen or damaged by a covered loss. 

Keep in mind that coverages have limits, which are the maximum amounts your insurance policy will pay toward a covered claim. 

When selecting your coverage limits, be sure to consider things like the potential cost of rebuilding your home or replacing your belongings.

That way, you'll be better prepared if a fire or other covered peril damages or destroys your home or goods.

A homeowners insurance coverage will not prevent damage to your home or personal items, but it will provide a financial safety net in the event that something unforeseen happens.

Contributed by Kudakwashe Tinarwo, Assistant Digital Marketing Officer, Zimnat