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Know What You Are Buying, Especially When It Comes To Protecting Your Home

May 16, 2022

Insurance is not many peoples favorite word. Most people don't like buying it, let alone dealing with an insurance company. Maybe you do like buying insurance. In which case, you will understand what I am about to talk about. 

Did you just buy your first home? Maybe you just bought your tenth home. Either way, if you get a mortgage, the mortgage company is going to tell you that one of your steps before closing is to buy home insurance. Many people will just view this as a step before closing, something you have to do before you call the new place your home. 

To understand the importance of insurance, you have to understand the importance of the investment you just made. Most people get a mortgage when they buy a house, which is money given to you by a mortgage company so you can buy the property. How nice of the mortgage company? then have to agree to pay back the money they just gave you (principal), typically over a 15 or 30 year time period, plus a little extra money (interest). Most people understand the basics of buying a home, but I think it is important to express it as simply as possible. So basically, you take money that is not yours to buy something you want now and promise to pay it back over a set period of time laid out in a contract. Typically, this is a lot of money we're talking about, sometimes multiple years worth of wages. 

To understand the importance of insurance, you have to appreciate what it means to live with a roof over your head. Your home is where you sleep. Your home is where you tend to keep many of the things that are most valuable to you. Lots of feelings can be had in your home, but the most basic one is feeling secure and safe.


Now imagine Mother Nature rears her ugly head and a storm comes through and damages that roof, or even worse, a fire burns your whole house down. In the house fire example, you have now been displaced from that place where you feel most secure and safe. Most, if not all, of your valuable items have been burnt to flames. You have to find a new place to sleep. The mortgage company will still ask for their money back every month. This is a very tragic scene. It is going to take an emotional and financial toll on you. Your insurance will be one of the big things you lean on as you recover from your losses. Won't you want to make sure your insurance will help you the best it possibly can in a situation like this?

This is why you have to know what you are buying when it comes to home insurance. Don't just shop for the cheapest price because it is something that is in the way of you owning the property. Understand all the different line items of the quotes you are getting or the policy you have. Talk to an expert who knows what is best for you. 

Check out our home insurance page to understand some of the coverages on your home insurance policy. Below, you can request a quote or call us at 317-257-2300 so you can have peace of mind knowing you are well protected in that place you call home.

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