Your House May Be Similar To Your Neighbor's, But You Still Shouldn'T Have Similar Coverage

Posted on: 14 May 2018

When it comes to homeowner's insurance coverage, the size and nature of the construction are just some of the many factors that determine your rates and the time of coverage you should have; this means you should not assume you need the same coverage as your neighbor even if your houses are exactly the same. Here are some of the reasons you and your neighbor need different coverage:

You Don't Have Similar Contents

Your home insurance doesn't just protect the structure of your house; it also covers the contents of your house. In fact, contents coverage forms a specific percentage of your overall home insurance limit. Even if your house is exactly like your neighbor, it's highly unlikely that you have the same contents. Do you have the same TV sets, same jewelry, same entertainment system or same clothes? Probably not, this is why you also need different coverage.

You Don't Have the Same Lifestyles

Your lifestyle is also a major factor that determines your home insurance coverage. For example, some people collect valuable artifacts, some people love entertaining guests, and some people love traveling a lot. All these are different lifestyles with different exposure to the kinds of risks that home insurance protects people from.

For example, if you travel a lot, then you need adequate coverage for your items when you are away from work; if you travel for extended periods, you may also need vacant house insurance for your house. A collector, on the other hand, may need specialty insurance or upgraded content insurance since standard home insurance coverage may not be enough to protect their collections. Another example is a pet lover with multiple pets; such a person should consider buying additional liability coverage to cover against the risk of pet attacks on other people.

You Don't Have the Same Fears

Home insurance is not just for compensating damages, but also for managing losses. Imagine the kind of fear you will have if you live in a flood-prone area but you don't have flood insurance. However, people have different fears, which call for different coverage. For example, if your neighbor has an extreme fear of getting sued for millions of dollars by guests who may slip and fall in their homes, they may boost their liability coverage. However, you don't have to go down that route if you don't have the same fear.

The best thing to determine the coverage you need is to analyze your exposure to risk first. An insurance agent can help you do that so that you can customize a suitable coverage. To learn more, visit a website like


Little-known Insurance Tips

While I have had auto insurance ever since I bought my first car at 16 years old and home insurance ever since I bought my first home several years ago, I have to admit that over the years I knew very little about insurance. I tended to just look at the price of the coverage and sign the paperwork without really looking into the pros and cons of each policy. After my friend was in a car accident recently (thankfully, she is okay!) and she said she had to pay for some of the damage to the other vehicle out-of-pocket even though she had a minimum state coverage auto insurance policy, I decided to put a lot of careful research into insurance policies and what they really offer. I want to help others by sharing the information I have learned on a blog. I hope I can help you!