Do we need to buy anything more than Homeowners Insurance?
My wife and I bought our first house and now that we've gone through the closing, do we need anything in addition to the Homeowners insurance we were required to purchase? Are there other things we should be considering?
Answers | 5
For personal insurance, it's best to consider your risk exposures. Generally, it's auto insurance, life insurance, home insurance and an umbrella policy. Risk only what you can afford to lose.
The most common mistake people make is not carrying the same liability limits for their auto and home insurance. They will carry state minimum liability limits on their autos and a different limit on their home. If your net worth or future projected net worth is considered - you'll want the same level of protection. Otherwise, it's kind of like building a mote around a castle and only have it go only around two thirds of the castle. Trying to predict where a lawsuit or loss would arise would be foolish.
It's generally, best to package your auto and home insurance as you'll generally get the best coverage with things like common cause deductibles and the best prices. It can close a lot of gaps too.
Carrying higher limits not only offers you better protection - it can get you better rates too. As it can put you in a better rating tier.
The best tip is using an experienced agent and getting their advice doesn't cost anymore and saves a ton of time.
The simplest explanation is this: Most homeowners insurance policies will cover structural and personal property damage caused by such perils as fire, windstorms, hail, lightning, theft or vandalism., as well as a personal bodily injury liability component. There are other homeowners policies that cover additional perils as well. Typically, floods and earthquakes are excluded unless you purchase insurance against them separately.
Mortgage protection insurance is a life insurance policy that typically covers your mortgage if you lose your job or become disabled, or it pays off your mortgage when you die. Payouts are paid directly to the beneficiary, and then can be spent on whatever the beneficiary deems best.
Make sure to consult a qualified expert in your area.