There are three primary factors in determining how much insurance coverage you need:
- The cost of the coverage
- The amount of protection you want
- Requirements from lenders
The first step in determining how much insurance coverage you need is to figure out how much of a payment you can afford. I know this seems obvious, but there are times people end up buying more protection than they can afford on a monthly basis. Lapsed coverage doesn’t do anyone any good, so start by figuring out your budget
The next step is to figure out how much protection you want or need. The more coverage you have generally means you will have less to pay out of your own pocket if disaster strikes, but more in monthly payment. You must determine the amount you can financially afford to lose. Depending upon your determination, more insurance may be the answer. If you are going to splurge on insurance, splurge by increasing your liability coverage to protect yourself from lawsuits resulting from your possible negligence.
The last thing to consider are any lender requirements. For instance, your lender may require you to cover the house for at least the amount of the mortgage. You are not required to purchase insurance from the insurer recommended by your lender, but you must comply with their coverage requirements.
Contact us to see if you can save money on your insurance by speaking to a professional independent insurance agent at Journey Insurance.
Let us sift through the hundreds of insurance programs to find you the most competitive rates available. Let us do the paperwork while you spend your time doing something you actually enjoy!
Journey Insurance Agency * Irvine, California * 888.323.7480
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