Should I Buy More Coverage if I Live in a Bad Neighborhood?

When you are looking into your homeowners insurance there are a lot of factors to consider on how much coverage to buy. Keep in mind things like, insurance for antiques, your old jewelry and even electronics that may often get forgotten about. While it may seem appropriate to buy more coverage when living in a bad neighborhood, this is not always the case. All homeowners, regardless of where they live, should take out enough coverage to cover all costs in the event of any accident or incident, including theft. Just because you live in a good neighborhood doesn't mean you are completely prone to theft and accidents. Having the right level of coverage, regardless of where you call home, is important for all homeowners.

Insurance Risk Factors

When you are living in a poor neighborhood where the crime rate is quite high, then you do have more of a chance of theft. Make sure you have enough insurance to cover all costs and all of your things. What this means is that you should take an inventory of your items and make changes to your policy whenever you acquire larger items. Think about items inside and outside your home such as bicycles, lawn mowers, electronics and clothing.

Furthermore make sure you have limits that are high enough for each category. For example, you may have a limit of $5,000 in place for your jewelry but have $15,000 worth of valuables in your jewelry box. What this means is that you should take out more coverage, just in case. However, this is something that all homeowners should do, whether they live in a bad neighborhood or not.

Keep in mind that insurance is not just there for theft. There are several other accidents that could take place, even if you are living in a safe and affluent neighborhood. Furthermore, even homes in lovely little communities can be burglarized or damaged due to theft. Additional things to consider when looking into coverage are the incidents of hurricanes, tornadoes, storms, earthquakes and floods in your area.

If you are living in an area that is prone to earthquake and flood then you may need to take out additional coverage as a standard H03 policy does not cover these costs. A standard H03 policy does, however, cover theft, riot and civil commotion damage which may be something you are concerned about when living in a bad neighborhood.

If you are living in a bad neighborhood you may want to invest in making sure your home is as safe as possible. That way if there are criminals in the street, they will not target your home. Getting a dog to watch the premises is always a good option as is an alarm system. Invest in security screens for your doors and windows and talk to your neighbors about starting a block watch. All of these things can help reduce your risk of being targeted for theft.

Insurance is made for those what if moments in life. No one can predict whether your home will be targeted for theft or if your home will be damaged in a hurricane down the road. The bottom line is this - you should not buy more coverage when living in a bad neighborhood; you should always buy the right level of coverage, regardless of where you live. While you may have higher risk factors, such as living in a bad neighborhood or living close to a floodplain, you may be in a safe area and still be hit. Take the time to review your policy option, check the limits and always insure for the worst likely situation.

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