Budget Concerns: How Much Insurance is Enough?

2 Types Of Home Insurance You Should Not Skip Out On

14 April 2015

Dustin Duncan

If you are buying a home, then getting the right type of coverage for your home can make all of the difference if there are natural disasters. Here are two types of home insurance you should not skip out on even if you have to pay a little more each month.

Earthquake Coverage

Even if you do not live in an area where earthquakes happen frequently, this does not guarantee that they will not occur in your area. Earthquakes are occurring more and more often around the world, and your area could experience one without warning.

Many people skip earthquake coverage in areas where they are not as common, but this is a big mistake. There is an added cost for this type of coverage, but the added cost is quite small compared to the cost of having to replace an entire home in the event of a bad earthquake.

If you get this type of coverage, the full value of your home will be covered so that it can be rebuilt again. Even if part of your home is damaged, this part of your home can be fixed and repaired without you having to pay anything except for the deductible that you agreed to pay. 

No matter how you look at it, you cannot lose out by getting earthquake insurance. Just be sure to ask your agent about this coverage since it does not come with most standard policies. It usually has to be written up separately since it is specialty coverage.

Flood Coverage

The other type of insurance you should not be without is flood insurance. Some policies cover basic flood costs, but you may want addition flood insurance if you live on a flood plain or in an area where rain is rampant and can cause mudslides.

Do not assume that your home is not on a flood plain either. This has to be determined by the city or your builder, and you can ask for this information before picking out your insurance. If you live on a flood plain, then there is a much greater chance that you will need to use your home insurance at some point to cover the cost of a flood.

Also, you need flood coverage if you live at the bottom of a hill because water can flow down to your home and flood it if there is a lot of rain. 

Both of these types of coverage, available from a company like Livings Insurance Agency, are necessary and should not be skipped, so talk to your insurance agent to find out about the additional costs and benefits.

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