Going without Homeowners insurance is a risky gamble. The odds are that any money you think you saved on premiums won’t seem like such a good deal compared to the cost of unplanned expenses that could have been covered by your homeowners policy.

For many people, a major factor in purchasing Homeowners insurance is that mortgage-lenders often require it, which means it’s easy to think of a Homeowners insurance policy as something you’re forced to get. But, the reality is it’s something you should want to have, absolutely need and should not do without, even if you’ve paid off your mortgage or your bank doesn’t require you to have it.

To help you understand why this is true, we’ve listed five reasons you should have Homeowners insurance.

1. There is Coverage for Damage Inside and Out

It doesn’t matter if you have a brand-new home, an older fixer upper or anything in-between, the fact is that costly unexpected interior and exterior damage can occur at any time and the only way to really prepare for it is with a Homeowners policy.

2. Coverage for your Personal Valuables is Also Included

There’s a reason why we call it “Homeowners” insurance instead of “Houseowners” insurance, and that’s because it protects your entire home and not just the structure itself. Your homeowners policy includes coverage for more than just the structure of your home. It also includes coverage you can use to repurchase damaged or stolen furniture, clothes, tech items, bikes, tools, kitchen gadgets, and almost everything else you store inside your house. In most cases, it also provides coverage for items in your vehicle (because only Home insurance – NOT auto insurance – covers items stolen from your car or truck).

3. Coverage for your Personal Liability

Like we said above, accidents happen all the time and that includes ones where people get injured. If you’ve invited someone into your home and they are hurt while they’re there, you can be deemed legally liable for expenses caused by their injury, even if you did nothing to cause it. In cases like this a Homeowners policy provides coverage options of up to $2,000,000 in damages—which is definitely not an amount you want to pay out of your own pocket.

4. It Also Covers Fire-Related Liability

Imagine that you’re at work and there’s an electrical short inside your home that causes a fire. Not only is your home damaged, but—since no one noticed the fire until it was too late—it spread to your neighbor’s house. In a case like this or others like it, you can be deemed legally liable for the damage done to their property. This is why liability protection is such an important part of your Homeowners policy.

5. It Can Help Pay Your Expenses During and After an Emergency

In many cases the kinds of emergencies that make a Homeowners policy necessary can be severe enough to leave you without a place to live. That’s why AMA insurance Homeowners coverage offers additional living expenses in some cases (review your policy with an advisor to know), which you can use to help pay for a temporary residence until it’s safe for you to return home.

Now any one of these on their own would completely justify the purchase of a Homeowners insurance policy, but when you see them combined, it becomes clear just how important this kind of coverage is—and that’s not even mentioning all the other ways it can help you out!

Finding out how much you can expect to pay for true peace of mind takes only a few minutes thanks to our easy-to-use quote tool.