3 Reasons Why It’s More Expensive to Not Purchase OH Home Insurance


If you’re a homeowner living on a budget, it’s understandable that you might question the wisdom and value of purchasing OH home insurance year after year. 

You might decide to decline the coverage when you have been claim-free for several years because you’re thinking that you are not actually using your coverage. 

But before you drop your coverage, you might want to think about the repercussions of going “bare,” as it’s referred to in the insurance industry. It’s totally possible that you could end up paying more for not having insurance than paying for a policy each year. 

Here are some ways that not having a policy can actually cost you more.

Liability Claims: Even if you are completely comfortable taking your chances with your property, you still have to think about the benefit of liability coverage that is part of your OH home insurance. 

If you are involved in a claim and are sued by another party and don’t have liability insurance, you are putting your personal assets at risk. One of the benefits of liability insurance is the legal protection it provides in the event you are sued. 

In many circumstances, the expense of hiring an attorney to defend and represent you can cost more than the judgment itself. And without liability insurance, you are going to have to bear this cost yourself. You also might pay a higher rate to the attorney who has probably negotiated a lower rate with insurance companies. 

Liability coverage is typically less expensive than property insurance, so it would be reckless to give up $1 million in coverage to save just a couple hundred dollars each year.

Future Insurability: On almost all insurance applications those who are applying are asked how long they have continuously maintained OH home insurance. Insurance companies ask this question because they perceive someone who is continuously insured as being reliable and stable. On the other hand, if you are in and out of the insurance market, you present a degree of uncertainty to the insurance company. 

Also, if you have not been insured for a long period of time and all of a sudden want to purchase insurance for the first time, it can make the insurance companies apprehensive. Even if your intentions are not to file a claim in the near future, you will face some cynicism in the future when you try to reenter the marketplace. If you can find coverage at that time, it will likely cost you much more than if you had maintained coverage without interruption.

Disastrous Loss: Even very wealthy homeowners who can afford to maintain very high deductibles on their OH home insurance still tend to carry some insurance for catastrophic losses. This type of loss is rare, but very expensive losses that can destroy some financially for a long time. 

However, because of their low likelihood and low incidence of occurrence, coverage is typically rather inexpensive. If you are looking for ways to save money, considering increasing your deductible. In this way, you will save on day-to-day premiums and pay for minor to moderate losses but will be covered for a rare, disastrous loss. 

When you stop to think about how much value you will get out of your policy in the event of a catastrophic loss, you’ll agree that the money is well-spent.

Before you make the decision to not maintain OH home insurance, contact our office. We’ll help you determine how much benefit you would derive versus the cost of not being insured. In the end, it should be a pretty simple comparison. 

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