“Do I Really Need Home Insurance?”

May 2016 was a devastating month for the City of Fort McMurray. The fires of May 2016 disrupted many lives and caused massive property damage. The fires also provided a hard lesson into the importance of being properly insured. Those who had home insurance will be able to recoup large portions of their loss.

Home insurance is intended to serve a variety of purposes. Its most well-known purpose is to cover losses relating to the home and personal property. Generally, home insurance will cover insureds for losses related to weather, fire, theft, and most other perils. Certain losses are typically excluded. For example, losses related to acts of war, terrorism and nuclear disasters are often not covered.

Most people do not realize that home insurance will cover them for negligence – even if that negligence is not related to the home. Often, home insurance will indemnify an insured for all sums they become liable to pay as compensatory damages for unintentional bodily injury. As an example, home insurance will often respond to dog bite claims. Certain activities and losses are usually excluded. Intentional injuries are one example. Home insurance will not usually respond where an insured has assaulted another person.

If you own a home, home insurance should be viewed as an essential insurance product. Even if you rent your home, purchasing tenant’s insurance to cover your possessions and any non-auto related civil liability is a very good idea. A licensed broker will help you design a policy suited to your needs. Homes are the most valuable assets most people own. They should be protected at all costs. Without the proper coverage, you could lose the full value of your home and its contents in a natural disaster or fire. You could also have your home sold by a court if you unintentionally injure someone in a situation where your auto insurance will not respond.