With an incredible amount of information online about most topics, there is almost no real reason why you cannot avoid many of the typical homeowner’s insurance mistakes. Yet, people still are making them. Here are some of the most common mistakes to avoid.
Not Buying Enough Homeowner’s Insurance
Many homes today are underinsured. While there could be several reasons for this, you certainly don’t want to be in this position and without funds should a disaster strike. Before you buy, or if you have not examined your assets and home’s value lately, be sure to calculate your home’s present worth and insure accordingly. Homeowner’s insurance is there to protect you – make sure you have enough.
Not Increasing Security Measures Around Your Home
Since you are interested in protecting your home, be sure to increase the security and safety features in it. Your home insurance rates will go down for the right kind of measures. Talk to your home insurance agent before you buy to make sure you get the right type of alarms and other equipment.
Not Upgrading the Policy when Changes Are Made
One reason that homes are underinsured is because there is no attempt to upgrade the policy. This happens even when people make major renovations or additions to their homes. Also, if you have gained some kind of valuable collection, or have assets that are valuable, then you may need to purchase additional home insurance (riders) to cover them. Overall, it is a good idea to review your homeowner’s insurance policy about once a year to see what is needed.
You may also want to evaluate how much insurance you need to rebuild at that time, too. If the cost of building materials and other things has greatly increased, you may want to make changes there as well. Inflation is another major reason for making regularly scheduled upgrades.
Not Having A Current Home Inventory
Another thing that people often do not have is an up-to-date home inventory. It is your inventory that the insurance company will use to pay for lost home content. Without an inventory – you may only receive a tiny fraction of the value. Avoid this by taking a walk-through video of your home and talk about the larger items. Pictures will be needed, as well as a list of the cost and replacement value of each item.
Not Finding Ways to Reduce Monthly Premiums
A common mistake is that many people are paying way more than is necessary for a good homeowner’s insurance policy. You could save a lot of money annually by taking some simple steps – such as increasing your deductible or putting all your insurance policies in the same company.
Not Shopping Around for Best Home Insurance Deal
One more common mistake people make is to buy homeowner’s insurance without getting other home insurance quotes. Prices vary considerably between insurance companies and you may be able to save hundreds of dollars simply by taking some time to investigate what kind of deal you may be able to get from other home owner’s insurance companies.
