If you live in a coastal area, you may be subject to hurricanes and other weather-related challenges. Earthquakes are becoming a more common event — not just prone to California. If you live on the coast, in low lying areas, or near water, you are subject to floods. Disaster can strike anywhere at any time. How prepared are you?
How big is your emergency savings?
The less emergency savings you have, the more you need insurance. If disaster strikes, how much money do you have access to? Do you think that will be enough to repair or rebuild your home?
How dependent is your retirement on your home?
Given our homes are often our largest asset, there’s no doubt many people count on their homes to provide rent-free security once the mortgage is paid off, or rental income if they are a landlord in retirement. Whatever the case may be, the higher your home is as a percentage of your net worth, the more you need to consider getting disaster insurance.