We all like to save money. That’s practically a universal truth. However, “penny pinching” has both a time and a place.
Well, we get it. Shelling out the money for cheap homeowner’s insurance in Houston, TX seems like a waste for something you will never use…or so you think. Let’s be honest, most of us aren’t related to Bill Gates and our house wasn’t a freebie. Our home is, most likely, the biggest ticket item we have ever had to purchase. So, the probability that we have a mortgage and have to have some type of home insurance is pretty high.
However, not all homeowner’s insurance policies are created equal. Opting for a home insurance policy that’s less expensive may save you money in the short-term, but you could end up paying the price later. The vast majority of mortgages fall into one of three timeframes: 15-year, 20-year or 30-year. That’s a long period of time you owe someone else money and a lot can go wrong during that time.
Many times, having a cheap homeowners insurance policy is like not having any insurance at all because it doesn’t provide adequate coverage.
EXPECT THE UNEXPECTED
Let’s look at a scenario under the assumption that cheap insurance equals no insurance. Let’s suppose the policy you chose was cheaper than several others you researched. However, it did not include coverage for floods or fire.
You’re at home cooking a nice Thanksgiving dinner with every pot and pan simmering, boiling and frying on the stove. Oh, and the turkey is smelling fabulous in the oven. As you’re working your magic in the kitchen, Uncle Bill calls to tell you Aunt Melinda is in the hospital. He’s giving you all the details and you completely forget about the stove and the turkey in the oven. Fifteen minutes into your conversation with Uncle Bill you smell smoke and the fire alarm goes off. You rush to the kitchen and try to put out the fire. Unfortunately for you, there’s no fire extinguisher nearby. The fire spreads quickly and you and your family are forced to evacuate. You manage to call the firefighters but, by the end of the ordeal, your home is reduced to rubble.
You’re thankful everyone got out safely. You’re also grateful you have homeowner’s insurance, but you forgot it doesn’t cover floods or fires. But hey, it was cheaper, right? Hopefully, the money you saved is enough to pay to rebuild your home.
The above example illustrates that, in many cases, you really do get what you pay for. Scenarios like these play out in real life more often than we think. According to the National Fire Prevention Association (NFPA), in a four-year span, U.S. Fire Departments responded to an average of over 166,000 home structure fires involving cooking equipment annually.
We all need to live and learn, but why learn the hard way? There are reasons insurance sales people exist.
FINDING THE RIGHT HOME INSURANCE AGENT
Just because cheaper is not always better, that doesn’t mean you can’t find adequate insurance coverage at an affordable price. This is why finding the right home insurance agent is essential.
There are many ways to find a good agent. You can talk to friends and family. Chances are you have friends and family who have been through the process of buying home insurance. Why not ask them who their agent is? You can ask your mortgage lender for a few recommendations. Keep in mind, mortgage lenders are experts in their industry. Last but certainly not least, you can surf the internet.
Internet sites like Cheap home insurance in Houston TX provide lots of information to help you shop for home insurance. Doing your research can save you money. Understand the different types of policies and your coverage needs, so you don’t pay for unnecessary coverage.
Saving money shouldn’t come at a cost so high that you and your family pay the price later.