April 28, 2012

What's the point in insurance?

Property insurance is one of those annoying, niggly costs that pops up when you least expect it. However annoying it is though, it's necessary - for many different reasons.

Firstly, you need to consider what you would do if something happened to your property that you couldn't afford to fix - say a leak occurred, the bath falls through the living room ceiling or a fire breaks out in the kitchen? This could potentially damage your entire property, not to mention mean your tenant (if you have one) can't stay there for potentially days or weeks. How would you cover all of the associated costs? Most of us are not fortunate enough to have thousands stowed away just for this purpose, so having insurance will mean you don't have to panic when it comes to getting the repair men/women in, or paying for the rent your tenant is likely to refuse to pay given they have nowhere to stay.

This leads us on to another key benefit - peace of mind. It's often said that you can't buy peace of mind or buy your worries away, but in some cases, this simply isn't true. Insurance takes away one more stress/worry from your life, which is something most of us could really benefit from. You'll likely be able to sleep better at night, knowing if the worst happens, you're covered.

What's more, if you're running a business from the property, rather than staying in it, think of all the costs associated with something happening to that! This doesn't just cover repairs, but loss of earnings and being unable to pay staff. This could run you a bill into the thousands; something which again, most of us just can't afford.

You may be asking yourself right now, can I afford insurance? However what you should really be asking is can I afford NOT to buy it!

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