Every family needs basic insurance coverage, but the premiums must fit into the household budget. The basic needs for family include:
- Home or renters insurance
- Auto insurance
- Life insurance
- Title insurance
Home insurance includes variables that affect the household budget. The most important is the deductable. If a homeowner agrees to cover the first portion of all claims, the premium for the coverage is less. For example, if a homeowner pays the first $1,000 of every covered loss, the insurance company does not have to cover small claims.
Here are some recent figures from the ABI (Association of British Insurers).