Daily Juice – Homeowner’s Insurance
Welcome to the Daily Juice Show, where we discuss just one “ingredient” of the complex money topics you face.
In this episode of Daily Juice, I’d like to spend some time going over risk management for your home. What type of protection you should think about and what type of insurance will make sense to get? I want to make sure you have the appropriate coverage.
In the US, you can’t own a home without having Homeowner’s Insurance. In other parts of the world you can. The reason being is because the losses in case of accidents can be significant and most of us can’t financially handle them.
I see this very often with my clients; they have various insurance plans, but in many cases the coverage is not appropriate.
Homeowner’s insurance is designed to protect you in case something happens to the structure itself (the building), i.e. dwelling coverage. When you look at your policy you will see a certain number listed there, for example $500,000. That means, your home/structure is insured for that much.
Now, the question is that enough coverage? The cost of construction is constantly going up, so the value of your home increases as well.
That’s your homework for today. If you own a home, take out your policy and take a look at how much dwelling coverage you have.
Until next time, remember: It’s your money, and your future wealth, just one sip at a time.