3 Reasons Why You Would Buy More Insurance Than You Need
Homeowner's insurance is one of those things you have to pay for all time, or until you no longer own a home, whichever comes first. That said, the average person attempts to keep the cost of this indefinite expense low. However, you can always buy more insurance than you really need and pay more for it. There are only a few reasons why you would ever intentionally buy more insurance for your home than you really need.
You Are Attempting to Be a Smart Homeowner
Inflation drives up the cost of everything, including the costs of building materials. You might buy excess insurance today with the expectation that something will happen to your home at a time that building materials will exceed the amount of the check that the insurance company cuts for you. While that makes sense now, what happens when nothing ever happens to your home in all the years which you reside in the home? You end up spending tens of thousands more on insurance you never use. Of course, if you live in an area where natural disasters are common, then you might make use of the extra insurance. It is a tough call, smart homeowner.
You May Want to Build More
You see a future where you double the size of your home, or you make the home larger after a disaster. Clearly, the basic policy would not be enough to cover your home's additions or added dimensions. By increasing the amount of insurance you buy now, all of your future building, renovating, and remodeling projects are covered under the insurance and you do not pay extra starting at a later date. You are essentially bracing yourself against the added cost of insurance that would cover the loss of your extra additions before you have them.
You Expect to Inherit Things of Significant Value
When you know that your parents have left you several valuable items in their wills, you have to have insurance to cover your future inheritance. If your parents are close to the ends of their lives, buying the extra insurance now will protect the things of value you inherit when these things come into your possession. Should you lose your home to fire or natural disaster before receiving these valuable items, the extra money would go towards your losses or towards the storage of your inherited items, thus keeping them safe until your new home is built.
