4 Most Common Home Insurance Mistakes
When you first become a homeowner, you will likely find that there’s a lot more paperwork than you expected. Home insurance may seem like yet another pile of papers that you can read when you have time. However, it’s important to know what your home insurance policy covers, especially if you end up needing to use it. Learn about the four most common insurance mistakes new homeowners make.
Skimming the Coverage
When you’re shopping for home insurance, you may prioritize the rates above all else. That could mean skimming what your home insurance policy actually covers. When you don’t read through what’s covered in your policy, you can miss out on coverage you need or end up paying out-of-pocket for expenses that are covered by insurance. Make sure to thoroughly read through an insurance policy before signing the dotted line.
Skipping the Inventory List
If you have valuable items in your home, and your insurance policy covers your possessions, you need to take inventory of what you have. Making this list ahead of time can help you in multiple ways. First, you more than likely have items you wouldn’t consider when going through a stressful situation like flooding or theft. You’ll also be able to advocate for yourself by showing proof that you provided an itemized list of valuables before something happened. Otherwise, you may struggle to prove that you had these items in the first place and receive adequate coverage.
Keeping an Outdated Policy
A lot can change in a year. You may get married or divorced. You might have a child or have an adult child move out of the house. There’s always a chance that you need different coverage than you needed last time you reviewed your policy. Make sure to review your policy once a year. See if there’s coverage you need that you didn’t need before, coverage you wish you had, or coverage you no longer need. Take a look at your rates, as well. Could they be lower? Consider shopping home insurance quotes to see if you can find a better deal, whether it’s bundling home and auto insurance with your current company or finding a new one.
Not Having Flood Insurance
You may be surprised to find that not every insurance policy covers flood damage. In fact, flood insurance is usually a separate policy entirely. Every state in the U.S. deals with flooding, and it’s expensive to deal with in terms of structural and property damage. Flooding is the most common type of natural disaster in the country, so you’ll want to make sure you have flood insurance, especially if your home is in a designated flood zone.
Now that you know about the most common mistakes homeowners make when shopping for home insurance, you can avoid making them yourself. Shop home insurance policies from over 50 top-rated insurance carriers in less than 5 minutes using Nsure. Have questions about a policy you found? Call us, and we’ll answer.