Avoiding Homeowners Insurance Pitfalls: 6 Expert Tips

Avoid These Home Insurance Pitfalls!

​As your local expert, I've got the inside scoop on the common mistakes to dodge.

Click and read to save money and ensure your home is fully protected!

Hey there!

Navigating homeowners insurance doesn't have to be tricky. As your local insurance expert, I'm here to help you sidestep some common missteps:

1. Don't Just Look at the Price: When shopping for insurance, it's tempting to focus solely on the price tag. However, cheap doesn't always mean the best coverage. Ensure your policy meets your needs by understanding what's included. Finding an agent who can run quotes with multiple carriers is a great way to save you time and find you the best rates for your needs.
2. Know Your Coverage: Understand what your policy covers. Don't assume- read the fine print, or reach out to your agent for clarity. Home insurance and warranties differ, so ensure you have the right protection for your property and appliances. 
3. Account for Home Value Changes: As your home's value increases, your coverage should too. Revisit your policy every few years with your agent to keep up with market changes. This means that if you have had a policy in place for some time, without revisiting your coverages over the years, the inflation protection might not have kept up with the home values, and you might not have enough coverage in the event of a catastrophic loss. To avoid this happening to you, you should revisit your home insurance every couple of years with your agent to make sure your coverage keeps up with the market. This guarantees you adequate money to fix or replace your items and property.
4. Choose Replacement Cost, Not Actual Cash Value: Opt for policies covering the replacement cost, not just the current value of your belongings. This ensures you're adequately covered for the true cost of replacement. Many of your possessions will cost far more to replace than their actual value was at the time of loss. For instance, replacing your TV can cost $1500 even though its actual cash value is only $200. You will be responsible for covering the difference if you decide to have your insurance valued at real cash value. 
5. Consider Flood Insurance: Many believe flood damage is covered, but it often isn't. With over 25% of claims from non-high-risk flood zones, it's wise to check and add coverage if needed. Even if you have home insurance that covers all, you should still take the necessary steps to prepare your home for the upcoming storm once you hear about it on the news.
   
6. Communicate Clearly: Solid communication with your insurer is key. Act swiftly when filing a claim, document with photos, and be precise when describing damages. Clear communication expedites the claims process. Get in touch with them as soon as you need to file a claim because depending on the type of claim, it might not be covered if you miss certain time frames. Make sure you answer all your claims representative's questions and if you have a few of your own, ask them straight away.

In conclusion, steering clear of these mistakes ensures your homeowner's insurance truly meets your needs. Investing time in understanding your options can save both money and stress. Choose a homeowner's insurance company that works with you, ensuring adequate coverage without overpaying. Consider reaching out to your agency to address any questions you may have.

Stay insured and informed!
Your Local Insurance Expert