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Save Money By Passing On These Home Insurance Specifics

Finding out that you aren't covered in the event of an accident is a terrible thing for any homeowner to go through. However, it's not always a sound financial strategy to then purchase as many policies as you can just to make sure you never find yourself in the same boat in the future. Though you could be insulating yourself from expensive damages, you could also become overinsured.

Having too much insurance can be just as costly as not having enough depending on how frequently you file claims. If you don't exhibit particularly risky behavior and your home is in good condition, then it's not likely that you'll need excess insurance. If you do go this route, then you'll be paying higher premiums each month and you could end up paying for things that you never use.

That's why it's best to find a homeowners insurance package that is fitted to your lifestyle. Determine what is necessary.

Here are a few policies that may not be right for your insurance plan:


If you don't live in a coastal area, then flood insurance isn't necessarily a good option for you. The likelihood of your home flooding from natural disasters is minimal, and even then, the insurance will cover only up to a certain amount of the damages. Having an expensive flood policy will raise your premiums even though you'll receive no financial benefit if floods aren't common.

Water line

Because your house is connected to a larger plumbing system, a water line runs from the street to your home. If this line is damaged, then you could have to foot the bill. However, because homes are relatively close to the street and repair costs are typically a couple of thousand dollars, it's not necessary to purchase coverage for your water line. Because the water line isn't that long, the chances of a break are minimal, so foregoing this type of insurance is necessary.


Kiplinger noted that some homeowners opt to have their weddings on their own properties. But if the wedding gets canceled due to weather or any other reason, then it will have to be moved to a different location. Some home insurance plans will cover the costs of this relocation. However, the chances of this occurring are minimal, making this type of policy virtually an expensive exception.

Private mortgage

To pay a smaller amount of money upfront, some owners buy private mortgage insurance, according to Bankrate. This can allow homeowners to have cheaper down payments because the insurance essentially protects the lender if you default. This type of policy is sometimes suggested or required by lenders if you have less than a 20 percent down payment, but you'll receive no benefit for being a loyal customer.

By approaching insurance companies with general knowledge of different policy types, you can settle on a plan that serves you. As opposed to being sold policies that aren't needed, you should speak directly with your insurer to make sure you're not paying for things you don't use. This will allow you to save money while also giving you more room to enhance coverage on policies you actually take advantage of.

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