Whether you’ve paid off your home or not, financial advisors will tell you there are sure to be many other expenses such as house repairs. Some of these can be quite unexpected; for instance, a car might run into your home and wreck the foundations or stability of it, or a sudden storm might mean a tree falls across your roof. How do you pay for these major repairs and still afford to pay the mortgage off? Financial planning right from the start is the best way.
Even if you have never sought advice from a financial planner, it’s not too late to start now. Most financial experts will advise you on the ways to minimise your risk and get more from your dollars. One way to minimise risk of loss is through insurance. Even though it might seem like money down the drain, having insurance for your home is essential. Then any kind of damage can be paid for.
You may only have paid premiums for one year when a tree falls over your home. You can just imagine what a new roof would cost, not to mention the damage to the ceiling, walls and frame. It would cost much more than what you have paid out for insurance. Even if you’ve been paying insurance for several years, the cost of repair to a damaged home can be far greater. Without the insurance you might even lose the home you’ve spent years paying for, and be left without any place to go.
Most people don’t have the funds for such an expensive repair bill; they just hope it never happens to them. The truth is, it happens far more than most people realise. Even small house repairs cost a lot of money. But if you have home insurance you never have to worry about how to pay for repairs, no matter how or why it happened.
It may be internal damage such as boiling oil overflowing onto the stove and causing a fire in the kitchen. The radiant heater may have been left on and caught fire to the curtains, or the hot water tank may suddenly develop a leak that ruins the ceiling, walls and flooring of your home. These are accidents that happen on a regular basis; any homeowner should expect and be prepared for them.
Financial advisors who work independently of an insurance company are the best people to seek help from. Otherwise they are only allowed to offer you insurance products from their company and these may not be the best for your specific needs. When you have the right insurance you pay less while knowing it will cover all the risks inherent in owning a home.