The 9 Common Homeowners Insurance Mistakes to Avoid

Purchasing a property is a huge investment, which is why you will desire to give the best protection possible. It is important to  understand precisely what your home insurance covers and more notably what it doesn’t. Homeowners are at times left bitterly let down when a claim is rejected and left with a huge out of pocket expense to restore the home to its previous condition.


If you are seeking to purchase homeowners insurance,  by now you recognize the importance of protecting your home and ensuring that you won’t have to pay out of pocket for major repairs or losses. What you may not take in, however, is that though many policies seem very similar, they may not be equal when it comes to making a claim.

Likewise home insurance laws from state to state, so if you are preparing on moving to a new state, you will need to look into the rules and requirements for home insurance in your state.

Even though it may be alluring, homeowners should not rely on cutting home insurance expenses to save money – it could come back to bite you. Keeping the right coverage could finish up saving you thousands of dollars in due course.

Avoid Costly Home Insurance Mistakes

Don’t get caught! With a little knowledge you can help ensure that you have the exact level of cover and comprehend the ins and outs of your policy.

Here are 9 mistakes that are commonly made while purchasing homeowners insurance.

  1. First Come, First Choose

    It is by no means a good idea to go with the first homeowners’ insurance policy you find, just as you would not buy a car or even a mattress without shopping around. There are many providers to choose from, despite of where you live and there will constantly be more favorable rates elsewhere. One of the top places to begin is with the NAIC’s State Web Map, which provides you access to every state’s individual insurance Web site. There you can come across links to available homeowner’s insurance providers close to where you live. For more help read how to choose best home insurance policy

  2. Glossing Over the Details.

    You may be astonished to find out that the rates are not the only things that matter. When shopping for homeowners’ insurance, check up on deductibles, pay rate claims and reputations before settling on a provider. Even though the rates are good at first glimpse, the company might be mean with paying claims or tend to raising rates after the 1st year of service. Speak to people in your area to find out how they like their providers prior to making a decision.

  3. Ignoring the Agents.

    It isn’t all the time about the insurance provider, as per NAIC. Actually, experiences can differ broadly within a homeowner’s insurance company because of the experience of their agents. In case you find yourself with an agent who does not mind if you get what you are worth of and who does not properly look into claims, you could lose important pocket change. Always research individual agents along with the firms for which they work.Common home insurance Mistakes to Remove

  4. Not Reading Your Policy.

    You would be amazed by what you will find in the fine print of a homeowners’ policy. For instance, a study carried out by the NAIC exposed that more than 40% of homeowners didn’t recognize that flood insurance was not incorporated in their policies. If you don’t know what your policy says, you can’t expect to get the maximum out of it.

  5. Under-Insuring Your Valuables.

    Most usual homeowners insurance policies limit coverage on the home’s valuables such as collectibles, jewelry or silverware. In case you have special valuables such as a pricey electronics or antiques, art collection, you should certainly procure extra coverage that will cover the entire replacement value of these items. You may save money in the short run by giving up this coverage but if anything happens to your valuables you will wind up losing considerably more.

  6. Buying More Coverage than Necessary

    Homeowners insurance providers like to sneak in coverage for things that their patrons don’t in fact need – but for which they will certainly charge. Things like supplementary life insurance, landscaping insurance, and travel insurance might appear without your full knowledge. You must also be cautious of a policy that covers definite areas of your home without any broad – range coverage. Both conditions are risky.

  7. Forgetting to Insure Your Workers.

    In case you have live-in help or frequently hire workers such as nannies or landscapers, you may need to insure these workers separately, in case they are hurt while working on your property. Though this type of coverage may seem perky, some states really want that you pay into a worker’s compensation fund. Check with your insurance agent whether you are required to do so, or whether your regular policy will cover all accidents that crop up on your property.

  8. Not Insuring Home-Based Businesses.

    Many small and home-based owners don’t understand that their home – based business is not generally covered by their home insurance policy, which means that in the event of an emergency or tragedy most office equipment won’t be covered. Ensure to add your home office to your home insurance policy or to take out another policy that will cover these losses, should they happen.

  9. Failing to Update

    The specialists at the NAIC suggest that you revise your homeowners’ insurance every year or so, based on the changes in your community. Learn what new products are obtainable or whether or not your provider has changed its policies. This is also significant after a big change within your family such as when the kids leave home or when you let in a renter.

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