I heard a story today where there was a condo that had a tenant who accidentally left the oven on as she went out. As a result, people smelled smoke and the fire department had to be called in. While no one was hurt and the situation was contained, it brought up a topic of having insurance for one’s home as there were many who bypassed the insurance to save money. The thought process was that these things are rare where insurance is just another financial liability.
The funny thing was how apparently so many people there started to research about insurance for their property afterwards. I guess you can say, fear selling sure works huh? Insurance are one of those things that are based heavily on an emotions I think. Example, there are insurances for so many things such as volcanic eruptions and tsunamis that one can’t help but wonder if the odds are too low to justify it. But then the thought of how much you lose if it ever does happen just sounds too risky.
With that said, I think a homeowners insurance is something that should be a part of your basic budget if you are investing a lot in your own property. A lot of times you can save money by paying annually as well if you are trying to reduce the cost. It does require a lot of research of course as you need to understand exactly what is covered and what is not.