My basement flooded. Five reasons why home insurance is so important
It was the Friday night of the August long weekend and I was all ready to step out the door for the start of my summer holidays when I surprisingly stepped in to a large puddle of water… in my basement. Looking further, I discovered that my three-year-old hot water tank had been leaking and had deposited about 3 inches of water in the furnace room and surrounding finished bedrooms and living area. The damage was extensive: the laminate, carpet, drywall, and baseboard were all water-soaked and if not remediated properly there was a high probability that I would have long-term mold issues. Luckily, I had home insurance. That night I called the plumber and the next day I called the insurance company.
As a financial literacy professional, I know there are many benefits to purchasing home insurance. Home insurance:
- Helps protect your home and the contents in case of theft, loss or damage to the inside and/or outside of your home or property. In my case, I was very surprised at the amount of damage caused to my home by a seemingly “small” water leak. It adds up pretty fast.
- May cover additional living expenses if you are unable to live in your home. While I was fortunate that the damage sustained was to the lower level of my house, in the case of a house fire, you and your family may have to stay in a hotel for an extended period of time while the repairs are being taken care of.
- Protects you against liability claims. Heaven forbid one of my parents were to slip – on the ice covered sidewalk that I should have cleared – and breaks their leg.
- May be required by the mortgage lender so that you can buy the home of your dreams.
- Will give you peace of mind. Having home insurance may help you (and in my case my furry four- legged) sleep at night knowing the largest purchase I have ever made is well protected.
I am pleased to report that the process unfolded quickly and seamlessly. Without home insurance, the cost and aggravation of undertaking a clean up of this magnitude would have been beyond me. Before I knew it, I had my basement back in the order that it had been before the leak, which further reinforced just why I have insurance.
Founder and Project Coordinator, MoneySmart Manitoba
Manager, Education & Communications, Manitoba Financial Services Agency