Choosing home insurance may seem like a simple task, but get it wrong and you will be dealing with a lot of headaches.
The right policy can protect your home from many types of perils, including vehicular damage, explosions, vandalism, theft, and fire. On the other hand, getting an inadequate policy can leave you with expensive repairs to your home, or with no home at all. For this reason, it’s essential to choose your policy carefully and to make sure your biggest asset is properly protected.
If you are a homeowner who is buying insurance for the first time, here are several mistakes to avoid.
1. Choosing the Wrong Type of Policy
One of the most common home insurance mistakes is to choose the wrong type of policy. For example, if you are planning on renting part of your home out, you would need the standard home policy with landlord insurance added in. Sit down, figure out your needs, and make sure the policy you choose offers full coverage.
2. Not Knowing What’s Included in Your Policy
A mistake many homeowners make is purchasing home insurance based purely on price. While the cost of your policy is important, it should not be the deciding factor. With a little time and effort, you can choose a policy that is affordable and offers the coverage you need.
3. Setting Your Deductible Too Low or Too High
The best home insurance policy has a reasonable deductible. Your deductible is the amount you have to pay before your insurance will honor your policy. If your deductible is too high, an emergency may leave you in a financial bind, while a low deductible will increase your monthly payments.
Don’t make the mistake of choosing an unreasonable deductible amount.
4. Not Making an Inventory of Your Items
A common mistake is not taking a complete inventory of your items. This is a step many homeowners skip because they don’t see the importance of it or don’t feel certain items hold enough value. However, without a complete inventory, you risk having your claims denied for items that have not been accounted for.
5. Not Updating Your Policy
Many homeowners make the mistake of failing to update their policy after life changes. If you have remodeled your home, or have done anything to increase your home value, you need to make sure your policy reflects those changes. Failing to disclose life changes can lead to a denial of your otherwise legitimate claim.
Avoid These Common Mistakes With Your Home Insurance
These are the mistakes to avoid when choosing your home insurance.
Make sure you are choosing the right type of policy, with a reasonable deductible, and the right amount of coverage. Know what is included in your policy and always update it when you make any changes to your home. Make sure to take a complete inventory of your items and never choose your policy based on price alone.
Follow these tips to make sure your home is properly protected.
Don’t forget to browse our site for more real estate tips.
