Understanding The Biggest Mistakes Homeowners Make With Their Home Insurance Policy
The roof over your head is one of the most valuable investments that you have likely ever made and because of this, having a net for protection if something goes wrong is crucial. Even though most homeowners realize the importance of their home insurance, they often rush into decisions when choosing a policy or make hasty mistakes with their coverage to try and save money. Here are a few of the biggest mistakes homeowners tend to make when it comes to their home insurance policy.
Mistake #1: Not taking the time to know your risks as a homeowner.
No matter where your home is situated in the country, it is left vulnerable to specific risks due to its geographic location. Too many homeowners do not take these risks seriously enough when they are shopping for insurance coverage. If you live in an area that is prone to flooding, such as in the state of Texas, it is always best to have extended coverage in the event of a flood. If you live in a state that has a great deal of hail during spring storms, this is something you should know when you buy your homeowner's insurance policy so you can get adequate protection.
Mistake #2: Assuming that damages are covered in spite of their cause.
If you have coverage outlines in your home insurance policy that should reimburse you for the costs of water damage, this does not necessarily mean that you have coverage for a flood. Plus, even if you do have flood coverage, it may only cover a flood caused by a monsoon and not a flood caused by excessive amounts of melting snow. Not only should you have the right kind of coverage, you should make sure you are covered for specific
Mistake #3: Making changes to the insurance
It is not uncommon for homeowners to play with their insurance coverage options through the year to try and keep their costs as low as possible. For example, you may remove wildfire coverage in the winter and pick it back up just before April when the season officially begins. However, dropping coverage options and picking them back up is truly a gamble and even when you add certain coverage options back on, it can take as long as 30 days for the coverage to take effect.
When you understand how easy it is to make a costly mistake with your homeowner's insurance, you can see why working closely with an insurance broker or agent is a good idea. It is best to have professional advice when initially shopping for a policy, making changes to your policy, or just when you need advice. To learn more about home insurance, talk to a company like Kerr Agency.