5 Reasons International Investors Need Homeowner’s Insurance
As an international buyer investing in property in the United States, it is essential to do whatever you can to protect your investment. The simplest way you can accomplish this goal is to purchase homeowner’s insurance for the property. Even if you do not plan to live on the property, homeowner’s insurance can protect you and your investment in many ways. To that end, here is a look at the top 5 reasons why international investors need homeowner’s insurance.
Reason #1: Protect Your Equity
Whether you paid cash for the property or chose to finance your purchase, your property will have equity. If something bad happens to your property, such as a house fire or a natural disaster, your homeowner’s insurance will reimburse you according to the value of your home. In this way, your policy ensures you do not lose what you have already invested in the home.
Reason #2: Protect What is Inside the Home
Whether you are living in the home or you are using it as a rental property, you likely have items inside the home that you purchased. If the items inside of the home are damaged or stolen, your homeowner’s insurance will reimburse you for the lost belongings. This includes items such as furniture, appliances, clothing, jewelry and anything else that may be inside the home or otherwise part of your property.
Reason #3: Liability Protection
If you, a family member, a pet or anyone else causes property damage or bodily injury to someone while on your property, your homeowner’s insurance will provide you with liability protection. Not only will your policy pay for the cost of defending you in court, but it will also pay for whatever damages the court awards up to the amount that is allowable on your policy.
Reason #4: Medical Coverage
If someone is injured while on your property or inside your home, your homeowner’s insurance will pay the cost of that person’s medical bills. This coverage typically pays for things such as ambulance services, x-rays, surgery and hospital stays. Some will even cover the cost of funeral expenses.
Reason #5: Disaster Assistance
If you do choose to live in the home, homeowner’s insurance will help to pay the cost of relocation if your home is destroyed or badly damaged. This includes covering the cost of meals, hotel stays and other living expenses. Most policies will pay up to 20 percent of the coverage price for loss of use of your home. For example, if your home is insured for $300,000, your “loss of use” benefit will be approximately $60,000.
It is important to note that not all homeowner’s insurance policies are the same. For example, when it comes to replacing belongings that have been damaged or stolen, your policy may reimburse the actual cash value of the items or it may reimburse the replacement cost for the items. If you want to be reimbursed for the actual replacement cost rather than the cash value, which accounts for depreciation and lowers the payout for the item, you can expect to pay more for your policy. By comparing the finer points of the policies that are available, you will be able to determine which is right for you.