Homeowner’s insurance covers so much more than just your home. The right homeowner’s insurance policy can provide you with peace of mind and confidence that your family and home are protected. Whether you’re buying insurance for your new home or have had your policy for years, be aware of these seven costly mistakes.
Only Looking at the Price – Insurance shouldn’t just come down to your monthly price. Trust us, you don’t want to learn this lesson on your own. Low monthly prices might be nice now but does it really protect you and your home?
Overestimating Your Coverage – Does your policy cover your basement flooding? How about roof damage? It is critical to understand exactly what your policy covers you for. One of the biggest mistakes you can make is assuming your policy will cover you for something that it clearly doesn’t.
Sticking to the Basics – Purchasing only the legally required amount of insurance is a disaster waiting got happen. Getting a more comprehensive policy could save you thousands in the long-run.
Not Alerting Your Insurer of Life Changes – Did you get married, have a baby, or even have a kid move out of the house? It’s time to call your insurance agent.
Not Taking Inventory of Your Possessions – I know it’s tough, I’ve been guilty of this. Inventorying all of your possessions is a lot of work. Taking photos and a log of your items might seem like a pain in the butt now but you will be thankful you did if disaster strikes. Keeping an inventory of your possessions can help you gain back the values of your items with less stress.
Neglecting to Bundle – You’ve heard this time and time again but bundling your insurance really will save you money. Bundling policies also makes it easier on you. When you have an insurance question you know exactly who to call and they can see your entire insurance portfolio.
Not Giving Your Insurance an Annual Check-Up – Think back on the past year, a lot has changed hasn’t it? That’s why it is critical to set aside an hour or two each year to evaluate your insurance policies. Use this time to call your agent and discuss your coverage amounts and premiums.