Thursday, December 28, 2017

Why It’s More Expensive Not To Purchase Home Insurance

Why It’s More Expensive Not To Purchase Home Insurance
The vast majority of homeowners live on a budget, so it’s perfectly understandable that they might call into question the wisdom and value of buying home insurance each year. If you’re budget-conscious, and you haven’t had a claim for several years, you might think that foregoing your home insurance coverage is a good option. After all, you might think you’re not using your coverage, so why pay for that extra expense?
Before dropping your coverage, take into consideration the repercussions of this decision. It’s quite possible that in the long run, you’ll end up paying a lot more for not having home insurance than having the yearly insurance expense. Some of the ways not having a policy can end up being more expensive are the following.

Catastrophic Loss

Catastrophic losses are quite rare, but if they do happen, the expenses can drain someone financially for a very long time. Since these losses are very rare and don’t happen very frequently, their coverage is normally not expensive. If you want to save money, an option to consider is to raise your deductible. By doing so, you will be saving on day-to-day premiums and only pay for moderate losses, but in case of a catastrophic loss, you’ll be covered. When you take into consideration the value you’ll get out of your policy in one of these events, you’ll see that it’s money well spent.

Future Insurability

Home insurance carriers will ask you how long you’ve continuously maintained home insurance coverage. If the insurance company perceives you as being someone that is constantly insured, you will be thought of as a reliable and stable risk, which may mean lower premiums. If your insurance has been on and off for a few years, or you’ve been uninsured for a long period of time and now want home insurance, the company may see you as a risk and become suspicious that you intend to file a claim in the not so distant future.
Even if you know that’s not the case, you’ll most likely encounter a skeptical attitude in the future when you try to get home insurance, and you’re more likely going to be paying a higher rate and premium than if your home insurance coverage is constant.
Liability Claims
No matter if you are willing to roll the dice and take a chance with your property, liability coverage (which is part of a home insurance policy) is something to take into consideration. All your assets can be exposed if you are involved in a lawsuit. Having liability insurance provides you legal defence in any lawsuits you may face. If you have this integral part of home insurance, your attorney and court costs will be covered, which will end up saving you a lot more money than your yearly home insurance rate.
Before making any decisions regarding your home insurance and whether or not to maintain it, consider the potential benefits versus the cost of not having home insurance. The equation should be pretty simple.



from Ed Cuellar Insurance Agency http://edcuellar.com/expensive-not-purchase-home-insurance/
via http://edcuellar.com