Homeowners Insurance in Saint Marys , PA
Maintaining appropriate financial security for you and your home is a consistent need that shouldn’t be taken lightly. While most homeowners understand the importance of having adequate insurance, market trends and price fluctuations may sometimes make nontraditional insurance appealing. With this in mind, some homeowners may consider self-insuring their homes.
What Does It Mean to Self-insure Your Home?
As the term suggests, self-insuring your home generally entails having confidence in your ability to pay for potential losses involving your property and finances out of pocket. This approach may include maintaining savings or other assets you rely upon to help absorb the financial ramifications of various incidents that could impact your home and finances, such as fires, natural disasters and liabilities.
Essentially, by choosing to self-insure your home, you may save the money you might have otherwise paid via premiums to home insurance companies. However, these financial gains may end up being meaningless if you end up experiencing catastrophic losses, such as requiring a full rebuild of your home.
Can I Self-insure My Home?
Although potentially risky, self-insuring your home may be a legitimate option in some situations. For example, self-insuring could be a viable approach if you have assets and resources capable of paying out of pocket to rebuild your home completely. Still, building material costs and construction labor can incur significant bills and market prices may fluctuate significantly. As such, setting aside the funds needed for a full rebuild can be difficult.
You should also be aware that regardless of your financial situation, most mortgage companies require you to carry homeowners insurance throughout the duration of your loan. This means that self-insuring is generally not an option unless you own your home outright.
At Pacelli Insurance, we understand that the homeowners insurance market may be challenging to navigate and that alternative approaches can seem appealing. Fortunately, our knowledgeable team has the experience and resources to help you find the right coverage options and secure appropriate financial security while enjoying optimal rates. Contact us today to learn more or to weigh the value of a personalized homeowners insurance quote.
man in gray and white checkered dress shirt thinking about self insuring a home instead of homeowners insurance