Dallas Homeowners Insurance - The Coverage Of Intangibles
When you think about Dallas homeowners insurance, you may think of things you can see and feel, like your furniture, antiques or your vehicle. But in today's economy with so many people losing their homes as well as their jobs, it makes good sense to consider how you will survive in the event that you lose your job, which can happen any time, no matter how unlikely it seems now.
And one of the best ways to protect yourself and your family against the financial and emotional stress of losing your job is to add something called job loss insurance to your existing homeowners insurance policy. Believe it or not, having this extra layer of protection has many more benefits than you may suspect.
Are You Eligible For Job Loss Protection?
Before you start comparing companies to find the best job loss protection quotes, it's a good idea to see whether or not you qualify for this type of coverage. Your eligibility can be determined as follows: if you lost your job as the result of unexpected termination or layoffs by your employer, then you will qualify. Job loss due to criminal activity, resignation or retirement will render you ineligible for this particular protection.
Can Self-Employed Individuals Qualify?
If you are self-employed, then you would have to look at the percentage of business ownership to determine your eligibility for job loss coverage. Should you own more than a ten percent share of the company you work for, you are likely not eligible.
How Fast Does Job Loss Protection Reimbursement Occur?
Unfortunately, having a rider added on to on your homeowners policy doesn't mean instant coverage. Usually, it takes between 30 and 60 days following an actual job loss for the policy to kick in. Once that happens, your insurance company will communicate with your mortgage lender, and keep your mortgage payments up to date until you've found other employment.
Two Common Myths About Job Loss Protection
In addition to the misconceptions surrounding eligibility, there are two others which are very common:
1. That you will receive payments from your insurance company indefinitely;
2. That protection will occur indefinitely following the loss of your job.
The truth is that, should you lose your job and your job loss protection comes into play, you will never see a dime directly from your insurance company. Instead, your mortgage payments will be made to your mortgage company directly by them.
Also, this type of protection isn't forever; an individual who loses their job will only be covered for up to six months of mortgage payments. But having some sort of a cushion in the form of emergency savings or planning for alternate arrangements for your mortgage payments beforehand can help soften the financial blow of losing your job.
Do You Really Need Job Loss Protection?
The answer to that question is up to you. When life is going good and the level of job security you have is comfortable, the last thing on your mind is what will happen if you lose your job. But no one can predict the future. Life happens, and jobs can be lost in the blink of an eye, because no job can be guaranteed, especially in these economic times.
The low cost of adding a job loss rider to your Dallas homeowners insurance policy may very well be worth the price if you find yourself without a job but still needing to keep up with the payments on your home. Comparing policies online is the quickest way to find out which companies can offer you the best price on this type of coverage.