5 Reasons Why You Should Have Homeowners Insurance

Home ownership is one of the largest investments you will make, so protecting this investment with quality home insurance is a crucial part of being a responsible homeowner. However, while many Trinidadians understand the importance of homeowners insurance, some don’t understand the specifics of what it covers if a burglary, natural disaster or other property damage occurs.

Here are five reasons why you should have homeowners insurance.

1. Most mortgages will insist on it

If you are looking at buying a home, chances are you won’t buy it with a roll of notes, in cash. Normal everyday kinda people go to the bank or a special financial services provider who offer mortgages. This is not only to cover you from any natural elements or thieves, but also to ensure the party responsible for the loan will get their money back. Simple as that.

2. You won’t suffer due to natural disasters

Natural disasters are one of those things that are in no one’s hands and can happen at any time, the devastation it causes is life-wrecking if you are not prepared and protected against losing everything. Imagine a fire or flood wipes your house from the face of the earth, and you are not insured. You would have to start from scratch. If however you are covered by insurance, you will be able to claim some of your losses, depending on your specific insurance contract.

3. Fire.

Over the years many homes were lost due to fire, resulting in millions of dollars in property damage. Cooking is the leading cause of home fires, but heating equipment, electrical cords and wiring, and candles can also be culprits Home insurance covers your property if it’s damaged in a fire, but you should always be sure to never leave stoves or candles unattended while lit.

4. You will be able to replace stolen goods

If you are burgled, and all your appliances are stolen in the middle of the night, it is a big deal. Especially if you aren’t insured. If you have homeowners insurance, you will be able to replace stolen good without a hassle. Even if the burglars had to break a window, bend a doorframe, you name it, you will be covered and the insurance will pay these unforeseen expenses.

5. Your equity will be protected

For most of us, our home is the largest single investment we’ll make in our lifetime. Homeowners insurance protects the equity in your home. Equity is the value of a piece of property over and above any mortgage or other liabilities relating to that property. As you make renovations to your home, the equity in your property increases. Homeowners insurance makes sure if something happens to your home, you won’t have to start building equity again.

Apart from all the facts listed above, home insurance will definitely give you some peace of mind in knowing that your loved ones are protected and that you will be able to provide for them even in the face of danger.

If you happen to be a victim of any of these scenarios, follow these steps when filing a homeowners insurance claim:

When filing a claim

  • Contact your insurance provider immediately to report a loss.
  • Be prepared to provide your policy number.
  • Do not remove debris or damaged property that may be related to your claim.

Steps immediately after filing a claim

  • Prepare a detailed inventory of destroyed or damaged property.
  • Gather photos or videotapes of your home and possessions for your insurance adjuster, if these are available.

Steps while the claim is processed

  • Keep copies of communications between you and your adjuster.
  • Keep records and receipts for additional living expenses that were incurred if you were forced to leave your home and provide copies to your adjuster.


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