When you shop for home insurance, you're probably concerned about two things: the quality of coverage and the price. Unfortunately, your efforts to save money on a home insurance policy can sometimes lead to a lack of coverage when you need it. By being aware of some of the most common home insurance coverage mistakes and how to avoid them, you can make sure you're getting the best value without sacrificing protection and peace of mind in the process.
Foregoing Guaranteed Replacement Coverage
If your home were to be totally destroyed by a fire, flooding, tornado, or other natural disaster, your insurance would cover the costs to completely rebuild, right? Well...not necessarily. Most home insurance policies cover rebuilding costs up to the amount of your mortgage, but if your home has appreciated in value over the years, you may not be covered for a complete rebuild. To make sure you're fully protected, make sure you have guaranteed replacement coverage as part of your home insurance policy.
Not Understanding Water Damage Protection
Another potentially confusing aspect of home insurance is that of water damage coverage; while a standard home insurance policy typically does include some protection against certain types of water damage (such as that caused by a sudden pipe burst or non-preventable plumbing failure), most policies do not include water damage protection for slow/gradual water leaks, sewage back-ups, or even flooding. This is where it may make sense to purchase additional coverage, especially if your home has a septic system or is located in a known floodplain.
Failing to Complete a Personal Inventory
When shopping for home insurance, it's a good idea to run a personal inventory of your possessions—especially the most expensive ones (electronics, firearms, jewelry, collectibles, etc.). This way, you can make sure you're choosing the right level of replacement coverage in the event of a loss. Keep in mind, too, that some possessions may need their own separate rider policy. This is common with engagement rings, wedding rings, and other high value jewelry. If in doubt, check with your insurance agent to see what kind of coverage he or she recommends.
These are just a few of the most common home insurance coverage mistakes to avoid. With the right knowledge, you can ultimately choose a home insurance policy that will best protect you and your loved ones. Meanwhile, you won't be paying more than you need to for the right coverage! For more information, contact a home owner's insurance company such as thesanfordgroup.net.
Share
