A robust insurance policy is the best way to protect your family from the potentially life-altering consequences of a natural disaster or other emergency.
As the price of insurance increases, many homeowners are asking themselves if they really need it. Indeed, S&P Global reports that the cost of home insurance shot up 11.3 percent in 2023.
As a result, more Americans are going without insurance. According to the Insurance Information Institute, 12 percent of homeowners didn’t have insurance on their properties in 2022.
As a lawyer who specializes in insurance cases, I’m here to tell you: Yes, you do need to keep your homeowners insurance. Moreover, if all you have is a standard homeowners insurance policy, then you probably need more of it than you currently have.
Here’s why insurance remains so essential for homeowners today.
Don’t just get insurance — get the right kinds
Insurance remains indispensable for a variety of reasons. First and foremost, when you have a mortgage on your home, you’re required to have insurance. Hence, securing insurance to satisfy a mortgage requirement is essential for most homeowners in the United States.
Second, securing the right insurance for your property is incredibly important. This is one case in which you should take the time to read and understand the fine print to fully understand what insurance you’re purchasing, what is covered, the different deductible options, and the conditions of both the insured and the insurer.
Standard homeowners’ insurance does not cover flooding or damage from hurricanes or other natural disasters, for instance. To protect yourself and your family, you may need to purchase supplemental riders or additional policies to cover unforeseen tragedies of this nature. If you live in a coastal state, securing windstorm and flood coverage will provide peace of mind for catastrophic events such as Hurricanes Helene and Milton.
How to lower your insurance premiums
While the cost of insurance is rising, there are several different things that homeowners can do to lower the cost of their premiums.
First, prioritize routine maintenance and upkeep of your home. In particular, keep track of how old your roof is becoming. Make sure to replace it at the appropriate time, given the lifespan of its materials.
Second, incorporate protective wind-proofing measures, such as straps in your attic. Impact-resistant windows and hurricane shutters are also key for residences that fall within the cone of uncertainty. In most cases, types of protections like these will generate lower premiums.
Homeowners and property owners can take other steps to protect their assets as well.
Document your property in good condition
Before a storm appears in the forecast, homeowners should document the state of their buildings, land, and possessions in good condition. Take a video on your phone while walking around your property, both inside and out, making sure to discuss what is being shown and display it from all possible angles. Go slow and take your time. Don’t worry about filling the video with talk — silence is fine. Photos can also work, as long as you take a lot of them.
The important thing is to document everything as fully as possible. Remember that, in many cases, people don’t know that a storm has caused damage until it has already happened. If you ever have to make a claim, you won’t remember how many shirts were hanging in your closet or how many pairs of shoes you had. You will need the images to complete your claim to the insurance company correctly.
This evidence also enables the insurance company to assess the damage you have suffered and the losses you have incurred in the wake of a disaster. The more information and documentation you can give an insurance company about the property’s condition before the damage, the better the carrier can evaluate it and provide the most money possible to assist your recovery.
It’s best to be proactive and record these images before any threat appears so that you can be thorough without feeling rushed. Set aside some time this weekend to complete this project.
If you need to evacuate and haven’t documented your property yet, make sure to do so before you leave.
Minimize the effects of a disaster
A robust insurance policy is the best way to protect your family from the potentially life-altering consequences of a natural disaster or other emergency. The truth is that these events can happen to anyone.
No one is immune, but everyone can do their homework, get the comprehensive insurance coverage they need, and document their property in good condition. Doing so can minimize the effects of even the maximum storm.
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