Top Mistakes to Avoid When Buying Homeowners’ Insurance

Buying a homeowners’ insurance policy is essential if you want to protect your home. You have to be careful to avoid many of the homeowners’ insurance pitfalls that can end up costing you money in the long run. Don’t buy homeowner’s insurance just because your bank mandates it. Do your research and comparison. It would be best if you put as much effort into choosing the right homeowners’ policy as you did into purchasing your home.
Find out as much as you can before you buy the policy and make sure a reputable agent answers all your questions. Here are some basic home insurance mistakes to avoid:

Insufficient Coverage

Current market value and replacement values are not the same. Many people insure their homes, thinking that they will be getting the money they need to replace their homes. Instead, they end up receiving the fair market value of their home, which may be considerably less. Know how much you will need to replace your home before you purchase your policy. If you have an existing policy and are worried about what your payout will be if the unthinkable happens, ask your agent to review your policy.

You Get What You Pay For

Cheap policies typically offer affordable coverage. Purchasing a homeowners’ insurance policy is not a good time to go bargain shopping. While it’s always a good idea to compare prices, you should always know what you get for your dollar. Sometimes a cheaper policy may look appealing until you learn about the hidden fees or deductibles that can cost you over the next few years, especially if you need to file a claim.

Understand Your Deductibles

Homeowners’ insurance policies have deductibles, just like your auto insurance. Understanding what raises or lowers your deductibles and what must be done to meet them is necessary when choosing a particular policy. The deductible amount you choose will determine when your actual coverage kicks in and how much your premium will amount to each month. Therefore, do your homework and find out what you can actually afford.
Never Let the Gaps Get You!

Sewer back-ups, floods, and mold are often not included in a basic homeowners’ insurance policy. Depending on where you live, hurricane insurance may also be an additional policy. These coverage gaps can be extremely costly if you don’t know they aren’t included in your original policy. If you are wondering what gaps may be present in your homeowners’ insurance policy, call your agent and ask for a review. You may want to upgrade or add additional coverage.

Learning to avoid home insurance pitfalls will take time. The agents of ISU-Wissink Agency have the experience and knowledge you can trust. Schedule a policy review so that you can uncover any gaps or weaknesses in your insurance coverage. Don’t let the typical home insurance pitfalls cost you! Take the time to learn as much as you can before you purchase a policy for your home and property.