Is Paying Upfront for Better Home Insurance Coverage Worth It?

Buying home insurance is an absolute necessity — your home provides the roof under which your family lives, and it’s a financial nest egg that also gives you long-term stability. But there are different levels of coverage, and people need to decide how much they will invest in protecting their homes.

Should you pay higher premiums upfront to get total coverage, or pay less and put the money you save into an emergency fund? No two people’s financial circumstances and lifestyles are the same, so the right answer for you depends on the specifics of your situation.

Here are some of the variables you should consider.

Assess Your Risk of Wildfires, Floods, and House Fires

Whenever buying insurance, you need to understand the level of risk you’re protecting yourself against. Depending on when you bought your home and where you live, the likelihood of a catastrophic natural storm may have increased due to climate change. Of course, even if underlying conditions remain the same, there is always a risk something could go wrong.

The entire purpose of insurance is that you enjoy the peace of mind of knowing that you are covered if a catastrophe occurs. Wildfires and flooding are on the rise as hot and dry conditions are increasingly common. Check a flood map of your area to determine if your neighbourhood is at risk of becoming a flood zone later in the future.

Are Your Deductibles Reasonable?

Very few people are entirely covered by their insurance if something goes wrong. If you need to repair and replace all your belongings because they are damaged in a fire, you will have to pay an amount upfront before the insurance coverage kicks in. This amount you need to pay is called a deductible.

Here is a helpful way to quickly judge if your deductibles make sense. Let’s say your home burned down and you needed to replace everything in it. Would the money you saved for an emergency be sufficient to pay for your deductible and still leave you with enough to be comfortable?

If so, you are OK. Otherwise, you should consider talking to your insurance provider about reducing your deductible and raising your premiums.

Insurance Lawyers Can Negotiate for You

Your insurance payout isn’t always set in stone, and hiring insurance lawyers when submitting a claim for flood or home fire insurance coverage can help get you a higher number. They also streamline the process and make what would otherwise be complicated paperwork much simpler. This will help relieve a lot of stress so that you can focus on your family and rebuilding your life after a loss.

They will ensure everything you need to submit to the insurance company is done promptly and properly, and they can negotiate on your behalf, too. Whatever your premiums and deductibles are, an insurance lawyer can help understand your entitlements and whether the insurer is correct about applying the terms and exclusions of the policy so you get the maximum benefit from your policy.

Home insurance is all about ensuring that if something goes wrong, you are covered. Nobody is in a better position to understand your finances and lifestyle than you are. Consider the likelihood of all risks you may be exposed to when determining your coverage, factoring in the likelihood of a natural disaster based on your geographic circumstances. If you do that, you should be sufficiently covered.