As a homeowner you you may be on a budget. When money gets tight, so do priorities. As a homeowner you have to look at where you can cut corners to save cash. After many years of going claim free on your home insurance, its understandable that you might question its value from year to year. Before, you drop your coverage give it another thought. It is possible that you may end up paying more for home insurance if you drop your insurance even just for a day and dropping can also lead to potential liability.
First Lets Look at What Your Home Insurance Policy Actually Covers
Many homeowners are under the impression that their home insurance only covers their home. While this is an important part of your policy, homeowners insurance coverage much more than the actually house itself. Typically it will also cover your Personal Liability, personal belongings, other structures, and medical payments to others.
Liability Insurance
Your home insurance can help protect you against possible injury or damage to another persons property. This is one of the most important coverage with home insurance. It coverage will typically range anywhere from $100,000 to $500,000 but it can go as high as a million or more.
Here’s an example of why this is important, your neighbor’s kido gets seriously hurt on your property. If you don’t have home insurance that provides personal liability coverage you could be liable for all of their medical bills, recovery expenses and any pain and suffering if you are found responsible for their injury.
Wait…Most home insurance companies will cover something like this under personal liability coverage? think about before you cancel that homeowners policy…
Personal Belongings
You have worked so hard to purchase all your belongings and your home insurance protects them. If you have a covered loss and your covered personal property is damaged then your home insurance can provide you coverage to replace those items and put everything back to normal.
Other Structures
Your home insurance covers any other structures you may have on your property. This could include anything from a fence to a shop. Rule of thumb is any type of other structure that is not attached to your house.
So might ask yourself what else could happen when I drop my Homeowners Coverage?
It Can Effect Your Future Rates
Almost all insurance applications ask you long you have been continuously insured. Why? The insurance companies perceive that someone who is continuously insured for a long period of time may be a more reliable and stable person to insure. More importantly, if you are uninsured for a long period of time, in the mind of the insurance company you could possibly be purchasing insurance for a reason. If you have a lapse of insurance, a new company will have to take this into consideration with your rates. This means that you could possibly be paying higher rates for a while.
You May not qualify for some policies in the short term
If you don’t currently have coverage it is possible that you may not be offered coverage with cretin companies for a period of time or you may have to purchase home coverage through a State Fair Plan
What is a better Option than dropping your Insurance?
Check out a higher Deductible or a different company
If you are looking to save money raise your deductible rather than dropping coverage. Higher deductibles may not provide you coverage for smaller claims but it will provide coverage in the event of a catastrophic loss. Shopping your homeowners insurance rate can sometimes lead to a better rate too.
Most people don’t know that home insurance goes past your home and also provides you liability in some cases when you are responsible or injury or damage to others property.
Get an Independent Agent
Getting an independent agent with multiple options may help you save both time and money. An Independent agent can have access to multiple companies rather than just one. Having competition under one roof can lead to lower rate. Make sure to find an independent agent that has as many insurance companies as possible.
Millennium Brokers has access to homeowners options from Safeco, Nationwide, State Auto, Progressive, Meramec Valley Mutual, Travelers, Foremost, American Modern and many More companies. With multiple options we can help provide you the resources to make sure your home has the coverage it needs for an affordable cost.