It’s bizarre that we need to reiterate this in 2024, but with a surprising number of Americans opting out of homeowners insurance, it’s time to dig deeper. Recently, the US Fire Administration estimated that over 46 million homes, collectively valued at $1.3 trillion, are highly vulnerable to wildfires and coastal disasters. This is no surprise considering the frequency and intensity of climate-related catastrophes. Not just coastal areas, landlocked states are at risk, too, with damages of $64 billion due to thunderstorms in 2023 alone. Given the frequency and magnitude of disasters beyond our control, getting insurance is worth every penny.
Why are Americans deciding to wing it?
The Wall Street Journal covered how Americans are bailing on their home insurance. The findings revealed that 12% of homeowners were opting out of insurance. Just a few years ago, up to 95% of homeowners had insurance, however, that has reduced to around 88% of the American population. What’s truly alarming is that people who make under $40,000 annually are usually the people opting out of homeowners insurance because of rising premiums. This is especially applicable to disaster-prone states such as California and Florida.
Among older Americans and retirees with hefty healthcare costs, home insurance is one of the first things that’s axed to cut down costs. While we can understand the sentiment of not wanting to overpay for a premium and prioritizing healthcare, experts at the Environmental Defense Fund stress the importance of home insurance and how it is the key to recovering from a disaster. Assuming the federal government will step in during a crisis is a dangerous financial mistake, as the federal government is not designed for this. Obviously, home insurance is.
7 Reasons why you need homeowners insurance, despite what anyone else tells you
From the get-go, the purpose of homeowners insurance is and always has been to protect people and their homes, personal belongings, and furniture. It covers damage in the interior or exterior of the home and also covers personal liability. And, in the very likely case that you would have to temporarily move out of the home while it’s being repaired, insurance will also cover those living expenses so you can live comfortably till your home is deemed habitable again. Let’s dive a little deeper into all the reasons why you need to have homeowners’ insurance to protect yourself:
- You get to keep a roof over your head – literally: The primary purpose of this insurance cover is to protect your dwelling or structure, and this is a life savior in the aftermath of a deadly hurricane or flood. Our homeowner’s policies cover major and minor damage, as well as replacement costs.
- All hands on deck: We all love our patios and gazebos, and homeowners insurance will also cover exteriors like a deck, shed, gazebo, garage, or fence, which are all susceptible to serious damage in severe weather conditions, which are becoming more common due to climate change. However, if you feel these are frills, at Gonzalez Insurance, you don’t have to pay for what you don’t want, and these aspects are customizable.
- Protect your precious things: In case of an electric fire or a short circuit, you could suffer serious damage to appliances like TVs, and refrigerators and these could cost you thousands of dollars to replace. Smart electronics, furniture, and appliances are all expensive to replace in case of loss or theft, and we have covers that can replace or compensate for these losses.
- Don’t let one hurricane tear through your life savings: Comprehensive plans will also provide damage attributed to natural disasters such as landslides, floods, or earthquakes, and this kind of damage can result in a family flooring through their life savings if they don’t have insurance in place.
- Protect yourself with immunity from lawsuits: If needed, one can also take personal liability, which means if you injure someone on your property due to neglect, the cover will compensate for any legal action that’s taken against you.
- Keep medical expenses at bay: Homeowners insurance will cover medical bills of yourself or someone else if they are injured on your property, regardless of who’s at fault. This also holds if a pet injures a family member or anyone else on your premises.
- Peace of mind to not lose sleep: For a large section of the population, a homeowner’s net worth is sometimes tied up in their homes, and all it takes is one bad storm or one isolated robbery to change your life for the worse. Our clients however sleep soundly knowing how approachable we are and that our agents are just a phone call away.
Doing away with your homeowner’s insurance is like gambling on whether your home will suffer a loss – major or minor, and in a world where hurricanes, convective storms, and wildfires are becoming the new normal, it’s always best to choose a smaller partner and have a custom policy in place which is comprehensive and caters to your needs. If you’re unsatisfied with your current insurance plan and are looking for a plan that’s worth your premiums, get in touch to discuss unique homeowners insurance covers that are custom-made to your needs.