Home insurance has always been a good deal because of how much it can save you during an emergency. But in 2016, that is even more true than usual. In this post, we will go over the top five reasons that you should have a good home insurance policy in 2016.
First of all, consider the rise of storms. The last few years have shown us just how devastating a big storm can be, with examples like Sandy that caused widespread damage across much of the Northeast region. Going without a home insurance policy means a storm like that could leave you without a home, costing you hundreds of thousands of dollars and a great deal of discomfort. Climate change appears set to increase weather intensity in the future, so expect this trend to continue in the next few years and beyond.
Next up is the risk of a fire. Like storms, fires affect a variety of parts of the nation. The West is most susceptible to big wildfires that can destroy many thousands of acres of land. Even now, a multi-year drought in California is causing an increase in the number and intensity of wildfires in the region. Once they get going, they are very hard to stop.
Theft is also a serious concern. In 2016, we have more to protect inside our homes than ever before. We carry more expensive consumer electronics and similar gadgets. These are prime targets for thieves because they are small, yet pricey. New tech certainly is convenient, but that convenience means we run the risk of theft. Home insurance can cover not only the house but also your possessions inside the house, so you can replace items that get stolen. This is important, because it is rare to actually find stolen goods and return them to their rightful owners.
Home values themselves are also finally starting to increase after a long period of weakness following the 2008 financial crisis. This increase in value means there is simply more to protect in a home, and it is harder to buy or rebuild your house after a disaster. Home insurance protects you financially from the fallout of such a disaster. The more expensive your home is, the more you benefit from insurance. Right now, most people’s homes are projected to increase in price for the foreseeable future.
Lastly, the cost of most home insurance policies is either the same or shrinking. You can take advantage of bundling, discounts for safety items, and other strategies to reduce the cost of your premiums. Doing so means you get more for your dollar. That means a lot in home insurance because the underlying asset is so expensive. You really want to be able to cover as many risks as possible with as small a payment as you can.