Do you Really Need Home-Owners Insurance in the Existing Market?

by Guest Author on June 26, 2013

As the U.S. property market continues to enjoy a tentative recovery, a growing number of citizens are looking to take the plunge into home ownership. Given that mortgage interest rates have also reached historic lows in recent times, the market seems ideally suited to new or first time buyers who looking to get their foot on the ladder. Regardless of the prevailing market sentiment, however, purchasing a house remains extremely costly and it is not something that should be entered into lightly.

Appraising Home-Owners Insurance in the Current Market

Novice buyers may be particularly prone to rash or hasty decision making, especially when it comes to protecting their investment. After funding the purchase, paying for structural surveys and investing in any necessary refurbishment work, for example, it is all too easy for vendors to tighten their belts and ignore the benefits of home-owners insurance. It is important to determine the precise purpose of this product and its relevance in the contemporary market, however, prior to making a definitive decision. Consider the following: -

What is Home-Owners Insurance?

In fundamental terms, home-owners insurance provides protection against damage that is caused to your property. Often including standard coverage to account for fire, theft and the impact of natural disasters, these policies vary and can be embellished according to your precise needs and geographical location. Should your home be particularly vulnerable to floods or earthquakes, however, then you can benefit from a flexible policy that makes this provision. On an additional note, home-owners insurance can also be tailored to protect you financially should a visitor or resident be injured in your property. So although it can potentially save thousands of dollars over time, you will be forced to pay annual premiums and may never see a return on this investment.

The Cost and Value of Home-Owners Insurance

We live in economically unstable times, so it is important to determine the likely cost and underlying value of home-owner insurance prior to making a commitment. As with the majority of insurance types, home-owners will be be forced to pay for the annual premium and establish a deductible amount that must be paid when a claim is filed. In 2011 the average claim was more than $800, although this continues to rise in line with inflation and disproportionately to the average national wage. While the cost varies depending on property type and exact location, however, these factors also influence a policies value and overall importance. If you live in a region that is prone to adverse weather conditions and the effects of natural disaster, for example, the value of a flexible home-owners insurance policy is likely to far outweigh the initial cost.

Does Home-Owners Insurance Represent a Sound Investment?

Invariably, home-owners insurance represents a sound and necessary investment. Even if you purchase property in a quiet rural area that has not historically experienced high crime rates or natural disasters, the Omni-present threats of fire and personal liability mean that a home-owners insurance policy is more than worth the annual investment required. Not only do the majority of lenders require you to have some form of home-owners insurance before they release funds, but even the most basic policy will afford you peace of mind in the event of an accident or mishap. So while the continual rise of inflation may theoretically diminish the value of home-owners insurance, this type of coverage retains its worth in the current marketplace.

Author Bio: This article was written by Daniel Watson, who is an ivy league graduate in journalism and the senior publicist for, an innovative insurance quoting marketplace. To access competitive home-owners insurance quotes, visit today.

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