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by Christy Bieber | August 22, 2021

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The insurance premiums for my homeowners are quite expensive – despite the fact that every year I look for insurance quotes and compare prices to try to get the best deal. But I don’t mind paying high premiums, and that’s because I actually made my insurance more expensive than it should be.

Why should I get more home insurance than necessary and increase my insurance costs? Let me explain.

I made the decision to buy a lot of coverage – specifically, I have a lot of liability coverage.

Liability coverage is the type of home insurance that pays out if something goes wrong and someone is on my property getting hurt.

I bought a lot of these, not because I plan to get someone hurt, but because I know things can go wrong – especially since we have a lot of guests and workers in and out of our home . We also live in an area where there are a lot of trees that could potentially topple over and we have a swimming pool which is an added risk even though it is securely fenced. We have dogs too, and while my dogs are the friendliest, most docile animals you could ever meet, surprise dog bite incidents happen and these are also covered by home insurance.

I know a person affected by the incident been injured, could bring a lawsuit against me if I got lesser liability insurance and something went wrong. And if your damage goes beyond the limits of my insurance coverage, I could be personally held responsible for covering any additional financial losses. This could include reimbursement for medical bills, lost wages, and even pain and suffering.

I don’t want to get into a situation where my assets are at risk and I could seize my wages or have my property mortgaged to satisfy a judgment resulting from claims for damages that my insurance company does not pay. Comprehensive liability insurance helps prevent something like this from happening to me. I am willing to pay for that extra security and for the peace of mind that, in the worst case scenario, my insurance will cover the damage someone gets as a result of an injury.

Of course, no one likes to think about someone being injured in their home – but accidents happen every day, even to careful homeowners. Having the right insurance is just a smart way to ensure that an unexpected disaster doesn’t turn into a devastating financial tragedy with lifelong repercussions Take your wealth into account – and remember that sometimes it pays to pay more to put additional risk on an insurer.

Regardless of where you live, insuring your home is critical to your finances in the event to protect against an unexpected incident. Whether natural disaster, accident, break-in or property damage – you want to have the right contents insurance cover for your situation.

Christy Bieber is a personal finance and legal writer with over a decade of experience. Her work has been featured in major media outlets such as MSN Money, CNBC and USA Today.

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