How Having Kids Affects Your Insurance

Whether you are planning to have children in the future or are currently expecting, there’s a lot to be considered when you add children into the mix. Soon it won’t just be you and your spouse occupying your little bungalow! If you thought your “practice child” – aka your dog – was a big responsibility think again. Having a child, or two, or three, is a whole new ball game! With this new addition comes the need to review your home and life insurance to make sure that even the smallest members of your family are protected.

An increase in costs all around is one thing most new parents or expecting parents grudgingly acknowledge, but surprisingly it might impact your insurance policies as well. Read on to see how.

Home Insurance

Your child will be living with you for (at least) the next 18 years, which means you need to consider the expected – and unexpected – events in life. You might expect hail damage to your roof at some point, but you might not be prepared for that old maple tree to fall on your house.

A basic Homeowner’s Insurance Policy will provide you with protection for:

• Your personal belongings
• Your home and free-standing structures on your property (such as sheds)
• Liability lawsuits if someone gets injured on your property
• Other specified perils such as hail, fire, lightning, theft, vandalism, etc.

Your home insurance policy will also provide you with the funds for alternative living arrangements if your home is deemed uninhabitable for a period.

Also, if you’re planning to move to a bigger house after the birth of your little one, consider before buying a new home how much this might increase your premiums and whether you can afford to do so. With a new addition, you may need to reassess your content’s coverage – even if you don’t change locations. This is because your possessions will naturally increase. You may purchase a crib, a new bed, baby toys, monitors, cradles, strollers, and more.

Also take into account outdoor additions, like entertainment pieces for your children. Trampolines, swing sets, pools. Talk to your broker about these items, as they may pose additional risks and significantly increase your liability.

Talking with a licensed broker will help you to determine the types of coverage you’ll need and can make this process more manageable.

Life Insurance

Another unexpected circumstance is the death of one or both parents when a child is young. Would your family be able to support themselves financially if you were gone? While terrible to think about, many families experience this loss before they should ever have to. If your income is vital to supporting dependents, planning for your future, sending your children to college, paying the mortgage, or other recurring bills – life insurance is worth talking about.

It is also worth mentioning that many young parents will only consider life insurance when a dependent comes into the picture, but life insurance can be purchased for many reasons. Even if you have no dependents, but you have debt, you may want to purchase life insurance to prevent your debt from passing on to your loved ones.

The right life insurance policy will provide your family with at least five to seven years’ worth of “your income,” so that they can continue to have the same quality of life after a sudden death. We also recommend having some additional life insurance protection to cover the cost of the funeral itself. These funds can help take care of funeral arrangements during a time when the last thing your family should be thinking about is money.

If your situation changes as you and your children get older, you may even choose to upgrade to a permanent life insurance policy or instead opt to pool into a savings or “emergency fund.”

The younger and healthier you are, the easier it is to get life insurance at lower rates.

Interested in a home or life insurance estimate? Try our online Rate Reducer for a Home Insurance quote or a Life Insurance quote. If you want to discuss how your insurance may be impacted by the introduction of young children, give Excalibur Insurance Brokers a call today at 1-888-298-7343.