Caught between baby boomers and millennials, Generation X can often be forgotten. But members of Generation X are now at the ages where they’re building retirement funds and settling into their careers and homes. They also tend to have more earners in the household than the other generations. Unfortunately, that money often comes with a lot of debt.
If you’re a part of Generation X, you need home insurance at an affordable price that won’t plummet you and your family into debt. People born between 1965 and 1979 are considered Generation X, making them around 38-53 years old as of 2019. Around 82% of Gen Xers own homes, but 17% of those homeowners owe more on their mortgage than the value of their home. Gen X is generally behind on retirement savings, as well.
If you’re in debt, not having the right amount of coverage can cause even more issues in the long run. While you might save money on limiting insurance now, one disaster or claim could run your bank account dry. This doesn’t mean you have to buy every coverage in the book, though. There are optional coverages you can choose to go without that may not cause big issues down the road. The important thing is to make sure you have the important coverages.
Most lenders will require you to purchase a certain amount of liability insurance when you buy a home, but a lot of Gen Xers don’t carry enough. They carry the minimum in order to acquire a loan, but not enough to cover themselves if something happens.
In general, insurers recommend you purchase around $300,000-$500,000 in liability coverage. This isn’t just to make you pay higher premiums. Say you host your child’s birthday party. The kids come over and swim in your pool, but one child slips, twists his ankle, and falls in the water. Not only do you want to make sure the child receives the medical attention he needs, but you also want to protect your family and assets against the furious mom that shows up on the scene. If you have $300,000 in liability, you may pay around $266 a year with a $1,000 deductible. Compare that to the cost of an ambulance, medical care and a legal suit. Liability coverage can also apply off your property.
Along with liability insurance, your homeowners’ policy should include dwelling coverage, personal property and additional living expenses.
You may also consider pet liability insurance, especially if you have dogs. This can assist if your pet causes bodily injury or property damage to someone else.
There are many ways to save on your home insurance discount. Bundling home and auto with the same company can save you money. These same insurance companies may also offer a loyalty discount. As most members of Generation X are married, some insurance companies offer discounts to married or widowed clients.
Shop around and discuss your El Paso home insurance options now so you can be set for the future.