You just bought your first home. What an amazingly rewarding and expensive day. During closing you dealt with a tornado of professionals, Real Estate Agent, Mortgage Broker, Banker, Real Estate Attorney and you somehow found time to sit down with an Insurance Broker to obtain Homeowners Insurance.
You recline comfortably in your new living room imagining yourself King of the Castle. You have a good job, a good family and good health. You are "Livin Large" as one might say. But this beautiful dream is really nightmare. Your castle, just a house of cards. You only purchased Homeowners insurance at the closing. Thats all you thought you needed. No one explained to you that Homeowners insurance alone does not guarantee the security of your new home purchase. When skillfully crafted by a strong insurance broker there are actually a minimum of five insurance policies needed to secure the future of both your family and your new home.
Auto, Homeowners, Umbrella, Life, Disability.
First and foremost, DO NOT SKIMP ON AUTOMOBILE LIABILITY COVERAGE. If you own a home and do not have at least $500K in Liability coverage you are putting your family and home at risk.
Second Homeowners, same deal, spend the extra $20 bucks a year and get $500K in Liability.
Third, get a Personal Umbrella policy for at least an extra $1 million in Liability. An umbrella policy is going to cost a little more than $10 a month. Cut one Starbucks coffee a week out of your diet and be a responsible homeowner.
Fourth, LIFE INSURANCE, if you have a family and own a home and you do not have a life insurance policy, you are both an irresponsible spouse and parent. In the majority of American families one spouse alone cannot cover the mortgage payment and the rest of the household expenses. And in 99.9% of American families the kids are screwed if both parents are gone and the mortgage falls on them. Life insurance is not an expense or something that can wait. It’s a necessity. Call your insurance professional today.
Fifth, Disability Insurance is often overlooked. Many people see disability insurance as a luxury for those rich enough to afford it. Bluntly, disability insurance is what keeps you from having to watch them take your house when you can no longer work and can't afford it. If you don't have life insurance, at least you don't have Watch them take the house. Without disability, the horror unfolds right before your eyes. These are very blunt words. But I hope that everyone who reads this post understands just how significant the risks of not being properly insured are.
So please, Real Estate Agents, provide a value add, discuss these topics with your clients.
Homeowners, go see your Insurance professional and discuss putting a package similar to this together. Thank you and if you have questions please feel free to email me.