Why Home Insurance is Important

Why Home Insurance is Important

November 22, 2020

Being financially protected especially at unprecedented times is important. Accidents, calamities, and theft can happen anytime, so it’s important that your home is secured.

Home insurance provides not only financial protection but also security in terms of shelter.

Home Insurance and Its Coverages

Home insurance is a type of insurance that covers the insured’s home and their belongings. Because purchasing a new home can be very costly, making sure that one’s home is protected is essential.

Typically, damages which are caused by the following are not covered, including:

  • Flood damage (separate policy)
  • Earthquake (separate policy)
  • Mold
  • Maintenance damage (e.g., pest infestation, worn-out plumbing)
  • Sewer backup

On the other hand, most policies cover damage caused by perils including:

  • Fire or lightning
  • Windstorm or hail
  • Explosion
  • Smoke
  • Theft
  • Vandalism, Riot
  • Damage caused by vehicles
  • Volcanic eruption

Liability Coverage

In addition to the perils mentioned earlier, most home insurance policies include liability coverage. Although liability coverage may not sound important to homeowners, it provides protection against lawsuits made against the policyholder.

This type of coverage provides security in cases of damage the insured causes other people, including situations like:

  • The insured’s neighbor catches fire because of an unattended grill;
  • Someone gets hurt in the policyholder’s property and needs medical attention; and
  • Stolen property from the insured’s home.

Other (Non)Coverage

Most policy providers offer coverage for the insured’s belongings. However, some of them require that the insured buys a floater to allow for more coverage.

Coverages include art and jewelry. Additionally, some agencies offer coinsurance policies that cover what the home is actually worth.

It’s also important to note that insurance agencies usually revoke home insurance policies when homes are left vacant for a certain time period.


Ensuring financial and shelter security is essential and home insurance provides this security. Thus, getting home insurance means protecting yourself from the dangers of financial losses and losing your home.

At Old Bay Insurance Agency, Inc., we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (410) 777-5390 or Click Here to request a free quote.