Importance of Home Insurance

Article by Peter R.

The acquisition of home insurance provides the homeowner with important protection. Home insurance is protection on an investment. It shows that the homeowner understands the value of his investment.

The Origin of Home Insurance

If a history of home insurance were to provide details on the origin of home insurance, such a history would need to refer to an 1853 fire. That January fire destroyed some barns and livestock in York County, Pennsylvania. The barns and livestock had been one farmer’s investment. His neighbors gathered together, and they discussed the need for a way to protect such investments.

Their discussion planted the seed for the idea of offering affordable home insurance. Those men had talked about insuring a farm, and their idea became the impetus for creation of Farmer’s Insurance. With time, Farmer’s Insurance decided to insure more than just farms. Eventually Farmer’s Insurance chose to offer home insurance as well.

Comparing Home Insurance to Protections on a Portfolio

As mentioned above, a home is an investment. In that respect, a home is no different from the elements of a business portfolio. The owner of such a portfolio wants to monitor the contents of the portfolio. The owner of that portfolio strives to keep those business investments at an acceptable level of performance. This information on the portfolio underlines the importance of home insurance.

Home insurance helps the homeowner to protect the value of his (or her) investment. Yet protection on a home does not guarantee maintenance of a home, and maintenance of a home is the surest way to preserve the value of that home. The investor maintains the investments in his (or her) portfolio. In the same way, the homeowner needs to maintain the value of his biggest investment, his home.

How Home Insurance Relates to Home Maintenance

Certain aspects of home maintenance receive great emphasis from the providers of home insurance. For example, Farmer’s Insurance has posted on its website some tips that concern home maintenance. Farmer’s recommends that homeowners trace the location of all their pipes, and Farmer’s also suggests that homeowners learn how to turn off such pipes in an emergency.

Farmer’s sees a direct connection between home insurance and home maintenance. The insurance agency advises homeowners to practice pest prevention. Such prevention includes keeping piles of yard waste away from the home’s walls. Home maintenance can also lower fire risks. Farmer’s Insurance encourages homeowners to reduce fire risks by checking the fire alarms every month. Alarms that fail to function properly should then receive new batteries.

Farmer’s Insurance provides guidelines on protecting both the home and the items inside the home. Farmer’s suggests creation of a home inventory checklist. Such a checklist would detail all of the items covered by the home insurance policy. Farmer’s also suggests creation of an emergency phone list and an earthquake checklist.

An earthquake kit should have a flashlight, a radio, a pipe wrench, with directions to the home’s pipes, and a decent supply of food and water. Those items would help a homeowner to live comfortably until the providers of the home insurance had paid a visit to the earthquake-damaged home.


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About the Author

I’m a writer and editor for several insurance websites. You may access my other articles at
 Insurance agent, Mike Vakos, provides coverage for auto, home, life, commercial, renters and recreational vehicles in Northeastern, Ohio. He focuses on clients in the following areas: Lakewood, Rocky River, Bay Village, Westlake, Avon, Avon Lake, North Ridgeville, North Olmsted, Fairview Park Olmsted Falls and Cleveland. Call 216-373-1476 today for a fast friendly quote from an agent who cares!
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