There's not much more catastrophic than losing your family home. Whether a natural disaster, flooding or a fire, there is never an occasion where this will be 'ok'. - of course, providing that your family are safe and well, it can be heartbreaking to see your home and all your belongings disappear before your eyes. 

In the heat of the moment, your primary thoughts will likely be, "what about all of my things?" Sentimental keepsakes and photographs, clothes that you've loved for years. Wedding dresses, christening outfits, and furniture passed through the generations of your family are all gone.

But, one thing you probably won't think about at that moment is the money. That will come later. Once you have somewhere to stay for a few nights, you'll need to sort out a more permanent home while trying to rebuild your life and property. 

Imagine now that you find out you've no insurance in place to pay for these things. Devastating! No way to re-purchase new furniture. No money available to rebuild your home.

If you buy a property with a mortgage, it is a legal requirement to have insurance in place. This is because you haven't yet paid off the balance of the loan; therefore, if you stopped making payments, the bank would look to repossess the property to claim back their money. They can't do that if the property has burnt down, can they?

But what if you don't have adequate insurance, and the worst happens?

Unfortunately, you're still liable for that debt and the interest if you have a mortgage. The loss of the property doesn't absolve you of that liability. And if you don't have any mortgage on the property, you will be left with a plot of land, and you'll have to find the money to rebuild the property yourself. 

The repercussions of not having adequate property insurance are almost as devastating as losing the property itself. If your house burns to the ground and you're not insured, you are left with no property, just a plot of land with no money to rebuild the property. And if you have a mortgage, not only are you in breach of the mortgage terms by not having insurance, you will still be liable to make the repayments, even though you don't have the property to live in. 

Property insurance may seem unnecessary, particularly if you have paid off your mortgage and it is no longer a legal requirement. But, even if you are the most careful property owner in the world, you could still be flooded, your property could be struck by lightning, or perhaps the adjoining property could catch fire? 

In summary, you need insurance! No one likes to think about bad things happening, but if the worst should happen, it can be made much easier if you don't have to think about money on top of everything else.