Homeowners Insurance Mistakes to Avoid
Homeowners insurance can be complex. Navigating all of the different components of a homeowners insurance policy can require specific knowledge most people simply don’t have. At the same time, it’s so important to have a good understanding of homeowners insurance and what may lead to common mistakes if you’re not well-informed. Insufficient coverage, unexpected costs, and other issues may arise if you’re not enrolled in the right level of coverage. Through this post, we’ll be going over some of the most common homeowners insurance mistakes to avoid and how to best avoid them through securing adequate protection for your home and possessions.
Underinsuring Your Home
One of the most common mistakes homeowners make is underinsuring their home to save a little money now, but ultimately may end up costing them lots of money in the future if they happen to have an incident occur.
Overlooking Flood Insurance
Flood insurance is often not covered with standard homeowners insurance policies. Many assume they’re fully covered from flooding with their standard homeowners insurance policies, yet this is often not the case. If flooding does occur in your home, you could be incurring substantial costs without any support from your insurer. If you happen to live in an area which is prone to flooding, you’ll want to strongly consider purchasing a separate flood insurance policy through the NFIP (National Flood Insurance Program) or a private insurer.
Not Updating Your Policy Regularly
If your home has undergone significant changes or improvements and you haven’t updated your homeowners insurance policy to reflect said changes, you could risk having a lapse in coverage. Regular reviews of your policy with your insurance agent can ensure you’re fully covered to the best of your ability.
Ignoring Policy Details & Exclusions
Many homeowners will not tread over their homeowners insurance policy in detail, until they need to make a claim. By then, it can be too late to consider coverage for the peril your home may have experienced. It’s so important to understand the components of your homeowners insurance policy and what is covered and what is not covered. You’ll want to fully understand the exclusions involved and the limitations of your homeowner insurance policy. This knowledge can be so valuable, as it will allow you to take additional measures if it ends, such as purchasing extra coverage for specific valuables or risk.
Choosing a Deductible That’s Too High or Too Low
While a higher deductible may lower your premium, it may also mean additional out-of-pocket costs during the claim process. Conversely, a lower deductible may increase your premium. Choosing a deductible which is affordable for you to pay in case of an emergency, yet not so low that your monthly premiums become a financial burden can be the right balance you need.
Not Shopping Around
Loyalty to one insurer could potentially cost you a lot more over the long term. Prices and offerings may differ significantly between insurance companies. Shopping around and requesting quotes will often lead to better coverage terms and cost savings.
Disregarding Liability Coverage
Liability coverage protects you if someone is injured on your property and sues you. Not having enough liability coverage, or the right type of liability coverage can expose you to significant financial risk if a lawsuit exceeds your policy limits. Ensuring your liability coverage is sufficient to cover your assets is a crucial step to take when generating your homeowners insurance policy.
Assuming All Personal Property Is Fully Covered
Standard policies usually have limits on certain types of personal property, such as jewelry, art, or electronics. If you happen to own valuable items, you may need additional riders or a separate policy to fully protect these assets.
Contact Portsmouth Atlantic Insurance Today
Taking the time to go over your homeowners insurance policy and truly understand what is covered and what is not covered can save you so much time, money, energy, and frustration. We hope this post has helped you gain a better understanding of what home-owners insurance mistakes to avoid. Contact us if you need any clarification on your current homeowners insurance policy, or you’d like to see if we can help you find a better quote for a homeowners insurance policy. We look forward to hearing from you soon and we’re eager to begin helping you avoid these common homeowners insurance mistakes.