The Financial Reader

Homeowners and Life Insurance are important to have in our lives. Life insurance will financially protect your family in case something happens to you. Homeowners insurance will help financially repair or replace your home and belongings. Homeowners will have a lot to consider when they are compiling information about how much homeowners insurance to buy. Buying a home is a big investment. Insurance will cover any losses to your possessions in the home and your home. Your policy will cover you financially if someone gets hurt in your home or on your property. Financial losses due to theft, fire and storms will also be covered as they are stated in your policy. The cost of your insurance premium will depend on how expensive your home will be to replace, the kind of coverage you choose, and what amount your deductible is, in your policy.

Liability insurance coverage will cover any accidents that happen to someone visiting your home. If you have expensive assets at stake and could be sued if an accident happens, then you should carry a policy with a high amount of liability coverage. You will also need to consider what the requirements are from your lender as to how much mortgage insurance you will need to carry. Most lenders require that the amount of the mortgage is covered by insurance. Lenders want to know that if a catastrophic situation happens, the amount of the mortgage still owed on the home is well covered, if the home is lost due to a fire or hurricane. If you buy a home in a flood zone area, your insurance company will insist that you buy coverage for flood damage, before they will cover you with a general insurance policy for your home. You will want to carry the proper amount of insurance to cover your home, possessions, injuries that might happen and full loss of your home due to disaster. The cost will depend on how expensive your home is to begin with, what your assets are inside the home, and what your financial ability is to pay the insurance premium. Life insurance should be carried by everyone. It is not just for the man of the house.

Women should also carry enough life insurance to cover the loss of their income if something happens to them. Depending on your age at the time you take out your life insurance policy, your health and lifestyle, will depend on how much insurance you should be carrying. The rule of most policies is if you are in your twenties, you should take out a policy that is twenty times your gross income. By the time you are sixty and over, you need to take out around five times your gross income. If you only take a small $100,000 policy when you are in your twenties, then you can always take out another policy when you have children and your family structure changes. Life insurance is there to protect the family with income, so they can continue living in their home with the same lifestyle they are use to. To determine how much insurance to take out, you will need to know how much money it will take to run your household and pay off major debts. The insurance money will have to last a while. Knowing how many years of insurance payments you want your family to have is also important. How many children you have now and if you plan on having more children, will need to be considered so you have enough coverage. Expenses for a funeral, legal situations, burial expenses and debts that need to be paid should all be considered when buying life insurance. When the death benefit policy is paid off to the survivor, it should be invested. This way the insurance money will give the family a monthly income. This guest post was submitted by Liza, a financial blogger and also a contributing writer for a mortgage refinancing company.