Your home is the place where you’ll be spending a lot of your time. That makes it a huge investment for you, both in terms of money and effort. It also means that there are many things that can go wrong with it—and when they do, the damages could be costly to repair. Luckily, there is property insurance to help protect your home from these kinds of issues as well as other disasters like fire and storms. If you own a house or apartment and want to know why it’s so important to have this kind of coverage in place, keep reading!
What is property insurance?
Property insurance covers your possessions and the cost of repairing or replacing them if they’re damaged, destroyed, or stolen. It also covers damage to your home or other buildings caused by something like a fire or storm.
Property insurance is usually included in homeowners insurance policies. If you rent, it’s important that you have renter coverage.
Most property insurers will cover your personal belongings up to a certain amount based on their value before they were damaged. For example, if your TV was worth $1,000 when it was stolen but can only be repaired for $600, the insurer would pay out $400 so that you don’t lose any money on what happened to it—even though its current value has dropped significantly from what it was before (because there’s nothing left).
What is covered by property insurance?
Property insurance covers the following:
Property damage: This is when you’re responsible for causing damage to another person’s property, whether it’s intentional or not.
Loss of use: This refers to any issues that prevent your homeowner from using their home, such as break-ins.
Personal property: If something happens to one of your personal belongings inside your home or apartment—as jewelry gets stolen or furniture gets damaged—your homeowners’ policy will cover those losses.
Loss of value: If you get sued by someone who says they got sick from living in an apartment where mold was present because it was caused by construction work being done around it (and which you were responsible for), then this could technically count as “loss of value” on their part because their entire life has been disrupted due to health issues.
Is property insurance worth it?
Property insurance is a good investment. If your property is damaged or destroyed, it might be worth more than what you paid for it, so the cost of the policy can be recouped quickly. You may also find that your property insurance covers some of your expenses if someone sues you because of negligence on your part (e.g., allowing someone else’s child to climb on your roof).