The Importance of Property Insurance
What Is Property Insurance?
The basic goal behind buying any insurance is to make you financially whole following a loss. You agree to pay a small certain fee to an insurance company today in exchange for a guarantee from the company that it will bear the burden of a large but uncertain loss in the future. Following that reasoning, property insurance protects you against damage to—or loss of—expensive personal property, such as a dwelling or a car. Forms of property insurance include auto insurance, homeowners insurance, renter’s insurance, and flood insurance.1
Let’s say that you own a house free and clear and have a tidy nest egg. As long as you continue to pay your property taxes, you have every right to enjoy the use of that house for as long as you like, as guaranteed by law. You may live there, rent it out, leave it vacant, or sell it. You’re sitting pretty, and so you may ask yourself, “Why do I need property insurance?” Read more about The Importance of....