What is the purpose of homeowners insurance?

How likely is it I will need to submit a claim to my insurance? Is it worth paying the cost up front?

Answer provided by
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Emily Maracle
Answered on Jul 19, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
“The purpose of homeowners insurance is to transfer some of your homeownership risk to an insurance company. If damage were to occur in your home due to a covered peril, your insurance would be responsible for covering it.
While submitting a claim may seem unlikely, it’s always better to be protected and not need it than to not be protected at all.
If cost is an issue, there are ways to save. If you already have a car insurance policy, you can try to bundle your home insurance with it.
You could also raise your deductibles for your home insurance. If you aren’t concerned with having to submit a claim, this would be a way to lower your costs.
However, you should keep in mind that you are required to pay your deductible first before your insurance will provide any coverage.”
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