(6) Protecting Equity In Your Home
It is one of the best reasons to purchase home insurance policy. Buying a real estate property such as independent house, flat or an apartment is one of the single & biggest investments made by an individual in his/her lifetime.
This whole process to own a residential property requires a huge amount of cash. It is usually paid through your personal savings or by taking a mortgage.
Once you start paying off your mortgage amount to the lender, you will also build-up a good equity in your property. The value of your real estate property will also increase along with good housing renovations.
But if some unfortunate thing or event happens to that home, your insurer makes sure that you don’t have to lose all of the value of your house earned after paying mortgage payments on time. Your real estate insurer will pay you for such losses after making claims.
(7) Protecting Against Special Circumstances
It is one of the most wonderful reasons to buy home insurance policy. Most of the natural disasters such as cyclone, lighting, hurricane, storm, etc. are usually covered under real estate insurance plans.
But, if residential property is located in flood or earthquake zone then a standard policy will not cover these disasters.
Similarly, if you live in an older flat, apartment or house then your policy will not cover damages caused by sewer or drain backup. In such situation, you can buy supplemental coverage to insure against such circumstances.
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