A recent Wall Street Journal article by Veronica Dagher highlights a concerning trend: A growing number of Americans are deciding to go without home insurance. Some say it’s because premiums are too costly. Others, such as successful families or individuals, believe they can cover their own financial losses. Here’s why it’s a concerning trend.
First, skyrocketing premiums are a financial burden, no doubt. With the home insurance national average rising by 20% this year, many homeowners are making difficult cost-cutting decisions. The risks of forgoing insurance far outweigh any short-term savings, however.
If disaster strikes, the consequences can be devastating. Without insurance, the entire financial burden of rebuilding or removing your home’s remains is your responsibility. It’s a daunting thought, and more so given the high cost of housing in many parts of the country.
As financial advisers like Noah Damsky point out, the decision to skip home insurance is a risky proposition. Understanding the potential financial consequences of losing your home is key. Even if you own your home outright, it’s important to remember why most mortgage lenders require borrowers to carry insurance.
Additionally, property frequently is held as part of a larger portfolio of managed assets. Home insurance can affect the portfolio’s excess/umbrella policy, which protects against liability claims. Without home insurance, you may not satisfy the excess/umbrella policy’s underlying limit requirement, which can create a coverage gap or leave you with no coverage at all. An uninsured property represents a major liability. Can your portfolio afford to take a major hit?
Home insurance isn't just about protecting your house; it's about safeguarding your financial future. It covers the cost of replacing your home and its contents in the event of damage or theft. As tempting as it may be to cut this expense, think twice and instead consult with an insurance expert.
Don't gamble with the roof over your head.
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Contact Marie Matterazzo, National Business Development Manager, (508) 801-0811 or mmatterazzo@intercobrokers.com.
InterContinental Insurance Brokers, LLC | MA License 1952007
About InterContinental Insurance Brokers
InterContinental Insurance Brokers, LLC is a division of Venbrook Insurance Services. InterContinental is a full-service commercial and personal insurance brokerage firm that delivers commercial insurance, select commercial business, private client services, and claims management to clients across various industries worldwide. Visit www.intercobrokers.com.
