Health Insurance
The soaring cost of medical care is reason enough to make health insurance a necessity. If you need to visit a doctor or urgent care center, you can end up with a hefty bill. More serious injuries that result in a hospital stay or require surgery can quickly rack up five-figure costs. We all know that the cost of health insurance is a financial burden for just about everyone. The potential cost of not having coverage is much higher.
Homeowner’s Insurance
Replacing your brand new home is an expensive proposition. Having the right homeowner’s insurance can make the process less difficult. When shopping for a policy, new homeowners should buy insurance that covers replacement of the structure and the contents. This is in addition to the cost of living somewhere else while your home is being repaired.
You need to remember that the cost of rebuilding doesn’t need to include the cost of the land, since you already own it. The price will depend on the age of your home and the amenities it contains. The cost to replace it could be more or less than the price you just paid for it. Also, be sure the policy covers the expense of any liability for injuries that might occur on your property. Dog owners need to take special notice that their dogs are covered under their HO policy.
BTW – Flood Insurance is not the same as Homeowners insurance. Every new homeowner needs to talk about this with their insurance agent. You want to make sure your new home is covered.
For more information about lists for Homeowner Insurance, click HERE.
Automobile Insurance
Let’s face it, you just bought a new home and we are talking about protecting your assets. Having no automobile insurance or purchasing only the minimum required coverage may save you a few dollars, but it puts everything else you own at risk.
Some level of automobile insurance is required by law in most places. Even if you are not required to have it, automobile insurance is something every new homeowner absolutely needs to have. If you are involved in an accident, you may be subject to a lawsuit that could cost you everything you own. We all know that accidents happen. The results can be tragic.
For info about Auto Insurance Prospect Lists, click HERE
Life Insurance
As a new homeowner, you should make sure to have the right amount of life insurance. Your coverage needs pay off your mortgage and cover living expenses for your family. Figure this will be necessary for at least the first few years after you pass away.
It’s a difficult conversation. None of us wants to talk about our own mortality. The truth is that life insurance protects the people that are financially dependent on you. If your loved ones would face financial hardship if you died, life insurance should be high on your list of required insurance policies. Think about how much you earn each year and purchase a policy to replace that income. You should also factor in the cost of burial too. That unexpected cost is a burden for many families.
Life insurance can also be helpful in providing cash flow for your family. This is to cover monthly expenses or pay college costs for your children if you have a family.
One question you may have is whether to choose a term or permanent life insurance policy.
Click HERE for info on Life Insurance Lists.
Long-Term Disability Insurance
According to the Centers for Disease Control (CDC), 22% of adults in the U.S. have some type of physical or mental disability. If an injury or a serious illness keeps you out of work, that could affect your ability to keep up with your mortgage payments. Short-term and long-term disability insurance can help protect you financially in those types of scenarios.
We all hope that “nothing will happen to me”. However, relying on hope to protect your future earning power is simply not a good idea. New Homeowners need to buy a disability insurance policy that provides the right amount of coverage. The goal is for you to enjoy your current lifestyle even if you can no longer continue working.
For info on Disability Insurance Prospects, you can click HERE.
The Bottom Line
Buying a home creates new financial responsibilities. With the right planning, you can keep from becoming overwhelmed. Ideally, you should have prepared yourself financially before you ever bought your new home. If you haven’t, it’s important to make planning a priority.
Many new homeowners struggle to save some money after buying a home. If that’s you, you need to take a close look at your spending. Now that you have a better idea of you expenses, you need to track them on a spreadsheet. As a result, you can see where your money. This way you can create a workable budget. Your budget should allow for saving towards retirement. It should also include an emergency fund for non-housing related expenses and putting money into college accounts.
Experts suggest that new homeowners should be aiming to save at least six to 12 months’ worth of expenses in a liquid savings account for rainy days.
