Generation X is often forgotten, but now they’re at the ages where they’re building retirement funds and settling into their careers and homes. They also tend to have more earners in the household than other generations, but this money often comes with a lot of debt.
People born between 1965 and 1979 are considered Generation X. If you’re a Gen Xer, you need home insurance at an affordable price, since about 82% of Gen Xers own homes. However, 17% of those homeowners owe more on their mortgages than their home value. Gen X is usually behind on retirement savings, as well.
If you’re in debt, not having the right amount of coverage can cause more issues later on. While you may save money by limiting insurance now, just one disaster or claim could deplete your savings.
What Home Insurance Coverage Do I Need?
When you purchase a home, most lenders require you to have liability insurance; however, many Gen Xers don’t carry enough.
Generally, insurers recommend $300,000-$500,000 in liability coverage. For instance, you host a child’s birthday party. Kids come over and swim in your pool, but one child slips, twists his ankle, and falls in the water. Not only do you want the child to receive proper medical attention, you also want to protect your family and assets against the furious mom. If you have $300,000 in liability, you may pay around $266 a year with a $1,000 deductible; compare that to an ambulance, medical care and legal action costs. Liability coverage can also apply off your property.
Along with liability insurance, your homeowners’ policy should include dwelling coverage, personal property and additional living expenses.
Dwelling Coverage: This pays for damage to the actual home caused by fire, hail, wind, lightning, etc. You can also get additional dwelling coverage for detached structures.
Personal Property Coverage: A homeowners’ policy usually comes with personal property coverage that lets you get the cash or replacement value of belongings lost to similar perils covered in dwelling coverage. This also includes protection against theft.
You might also consider pet liability insurance, especially if you have dogs. This helps if your pet causes bodily injury or property damage to someone else.
There are many ways to save on home insurance. Many insurers offer bundling, loyalty programs and discounts for married or widowed clients. Discuss your home insurance options so you’re prepared for the future.