Why is insurance so important?

We spend our lives working hard to achieve the things we value most: jobs, homes, families, businesses, cars, fitness, and financial security. And then we work just as hard to keep them. Insurance is a safety net that guarantees when accidents happen, mistakes are made, or in the event that Mother Nature takes you for a ride, you and the things you work so hard for will be protected. It’s a tool to help lower your financial risks and protect both your current assets and your future income. It’s a hedge for your bet. But in this case, you’re betting on you.

Why do people insure things?

People insure things that are valuable to them and that would cost a lot of money to replace if they were stolen or damaged.

Adequate insurance should:

Cover all possible risk. And be enough to cover damage or a loss (i.e. if a house is worth $400,000, it should be insured for $400,000, and no less). It should also take into account the replacement value, rather than the original value paid. Why? So that you’re covered for your home’s current worth…not one that’s 10 or 20 years old. If you’ve made upgrades since purchase, or the house has appreciated in value, update your policy to reflect that.

You can’t afford not to have insurance.

You should consider three things when deciding whether to buy insurance (and what type you need):

  1. The amount of risk you’re willing to take
  2. The amount of money you could lose
  3. The amount of money you are willing to accept losing

But I’d rather “save the money”

Insurance provides peace of mind because it can cover all the crazy “what-if” scenarios that you hope only happen in your nightmares. Knowing you’re covered in case of unthinkable calamities is a cheap and easy way to know your assets and loved ones are protected. Facing one of those scenarios and realizing you aren’t covered because you were trying to save money is humbling. With the right coverage, you have the security of knowing that you’ve got almost any situation handled, at least from a financial standpoint. We hate to see anyone face one of those “what-if” scenarios and realize they aren’t covered because they were trying to save a couple hundred dollars a year on a policy.

What Does Homeowner’s Insurance Cover?

Homeowner’s Policies Cover 3 Basic Areas:

  1. Structure – Your house, from the foundation to the roof
  2. Belongings – Your things are covered from loss or theft (and offsite loss of covered property, i.e. wedding rings and other items named within your policy)
  3. Liability



  1. Fire
  2. Hail
  3. Wind
  4. Damage
  5. Falling Objects
  6. Other Events

Covered With A Rider (Add-on Policy)

  1. Some types of water damage
  2. Flooding
  3. Earthquake

Never Covered

  1. Termites
  2. Pests