Being able to finally pay off the mortgage on your home can be one of the most significant achievements in your lifetime. After you pay off your mortgage, you're no longer required to have home insurance so some people feel a sense of relief. However, you should keep your home insurance policy active to avoid putting one of your biggest investments at risk… your home.
There are several benefits to having home insurance after you have paid off your mortgage which include:
- Protecting Your Property Against Damage
Choosing to retain your Home Insurance policy* will guarantee that your property is covered against damage resulting from fire or natural disasters such as earthquakes hurricanes, storms, floods and landslides. What if your home was completely destroyed by a natural disaster? It would be very hard to cope financially knowing that you would have to replace it without insurance. We never really know when a natural disaster will strike, so it's best to be prepared.
- Personal Liability Coverage
It's your responsibility to ensure that your home is kept in a good state of repair so that it's safe for those who work on or visit your property. However, should they get hurt while on your premises as a result of an accident, you can be covered to compensate them for their medical expenses or injuries under your Home Insurance policy. So if, for example, you know you have a leaking pipe in your bathroom and your guest slips and falls as a result then you can be deemed responsible for the compensation of the person’s pain, suffering and medical bills. You need to ensure that you are protected by the liability coverage afforded by having Home Insurance.
- Alternative Accommodation Expenses
What if there was a fire resulting in your home being badly damaged forcing you to find somewhere else to stay until your home is repaired? What would you do? Don’t worry, in the event that repairs are being done as a result of an insured loss, such as fire, you are forced to live elsewhere, having a Home Insurance policy could ensure that expenses such as rent, "comparable alternative accommodation" or the cost to store your furniture temporarily gets covered.
- Ability to Replace Your Personal Belongings
A loss that people may have experienced is the theft of personal belongings as a result of break-ins. In the event of a break-in, insuring the contents of your home can provide you with compensation for your loss or damage. With coverage being provided for all the valuable things you own such as money, jewellery, laptops, electronics, furniture, appliances, art and other household items, you have the ability to replace your belongings under your policy.
- Peace of Mind
Having Home Insurance after paying off your mortgage is very important as you will have peace of mind and confidence that despite whatever storm may come your way, your finances will not be affected. This is why at BCIC, our mission is to provide peace of mind to our customers by delivering solutions that protect their valued assets.
*Keep in mind that the information above is a summary and does not include all terms, conditions, limits and exclusions contained in BCIC’s policy document. Always remember to read your policy carefully to understand what you are covered for and ask your insurance advisor questions to ensure that you have secured the maximum coverage that you deserve. If you have any questions about Home Insurance coverage feel free to give us a call at 1-888-BCIC-INS, speak to one of our LiveChat agents or visit our website www.bcicjamaica.com for more information.