Photo Credit: jimalone via Compfight cc

Photo Credit: jimalone via Compfight cc

I’ve never given much thought to home insurance because I’ve never had to! It’s one of those things that you don’t need to really worry about until you have a home. I’ve had the renter’s form of it that protects my personal property only in case it gets stolen or damaged but I didn’t get that until recently too! Now I’m looking into house insurance and earthquake insurance! Some people don’t want home insurance at all and risk having to pay for everything if anything happens to their house. Regular home insurance doesn’t even cover natural disasters anymore so that’s more premiums on top of the regular home one. Should I get home insurance and earthquake insurance?

Home insurance
The basic concept behind buying insurance of any kind is to protect you in the event that anything happens. If I’m planning on owning a house for the rest of my life then I’m sure at some point I’ll be able to use my home insurance to cover something. It could be a water heater malfunctioning and spewing water everywhere, a tree falling right on my house, or even a fire. Fingers crossed that nothing of that kind ever happens to my home. Forgoing insurance is like playing a game of chance. Home insurance is pretty much a pretty clear choice for me when it comes to getting it or not. There are too many things that could happen.

Extra insurance
Earthquake insurance is another different topic though. As I was researching earthquake insurance I found some interesting tidbits about it. The premiums used to be much lower and insurance companies were required by law to offer it along with normal home insurance. Along came the 1994 Northridge earthquake and insurance companies paid out more in damages than they had ever gotten in premiums. Since then companies no longer are required to offer earthquake insurance and only a few actually have it. This means that the premiums are much higher and that they can get away with higher deductibles. Compared to regular home insurance, earthquake insurance comes with a high price tag and isn’t something I necessarily need.

Play the game of chance or have security
Both insurance premiums are separate so I could just go with one and not the other. Of course home insurance is pretty much a no brainer for me. I wouldn’t even think of going without. After all the money and work we’re going to be putting into our home I definitely want to make sure its safeguarded. Earthquake insurance on the other hand is something debatable. The premiums for it are almost as high as home insurance! I could potentially save the money since my home isn’t perfectly situated on a fault line. A lot of homeowners in LA actually don’t have earthquake insurance. The deductible is so high that only very major events or the collapse of an entire home would be covered. Save the money or be assured my house is entirely covered?

 

It’s my first home so I’d much rather have that security blanket and have both types of home insurance. Insurance is for just in case events and we might never end up claiming anything, but if we have to then we have the insurance and we’re good to go! In my mindset I’d much rather pay the premium than be placed into a situation where the unthinkable did happen and I was not covered. Another bill to pay, but it’s something I feel is worth it!

How do you feel about home insurance? Do you also have other types of additional insurance?

 

 


2 Comments

  1. Posted November 9, 2013 at 6:04 am | Permalink

    Most insurance options are there to give us piece of mind. Given a home consists a huge part of most peoples networth, i think its definitely important to have some form of insurance on it. Getting extras, well, i think that depends a lot on your location and financial situation eg, if you are in the tornado belt, would help to be covered for that.

    • TeenyGreen
      Posted November 9, 2013 at 10:48 pm | Permalink

      I’m thinking earthquake insurance is pretty much a good idea for LA. There’s an earthquake every week or so it seems like. Not big ones of course, 4 or 5 pointers.

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