Many people often ask why home insurance is so important and we merely need to point them in the direction of the worst case scenario. If you have just bought a new house, and are responsible for the contents and buildings insurance of your home, your decision to buy home insurance could have a huge influence over your financial situation in the future.
Worst Case Scenario
The customers who ask why they need home insurance are pointed in the direction of the many families who decided not to take out home insurance, and then found that the decision massively contributed to their downfall.
One of those families had recently bought a £400,000 home, and has a £320,000 mortgage on that home. One of the family members left a blanket draped over a light, which set the house on fire and ruined the entire home. Without home insurance that family were then faced with the prospect of having to replace everything they owned in the house, around £70,000 worth of belongings, as well as having to find somewhere else to live.
On top of those costs they still had to pay their mortgage, as they still owed the bank money for a home they could no longer live in, as well as having to pay to have the home first of all demolished, and then completely rebuilt again.
With costs nearing £400,000 to rebuild, replace and provide alternative accommodation, the decision to not buy home insurance was one that cost the family an awful lot of money, money most families would simply not be able to afford.
Peace of Mind
Home insurance offers a family peace of mind, and is a vital insurance policy. It allows you to financially protect your home and its belongings, so if the worst was to happen, you won’t be left out of pocket at an already difficult and stressful time.