Home Insurance Mistakes You Can Totally Avoid
Homeowners insurance has a reputation for being complex, which is why working with an insurance broker makes sense for most people. A recent study conducted by Realtor.com found that only 56 percent of homeowners know what to look for when buying a policy.
At DPM Insurance Group, our licensed brokers and CSRs are here to help you navigate all the ins and outs of finding the most affordable policy that offers you the kind of protection you need for your home.
Here’s a look at some common homeowner’s insurance mistakes we can help you avoid.
Underestimating the Value of Personal Belongings
A lot of people grossly underestimate the value of the contents of their home – sometimes on purpose in hope of saving on premiums, but far more often just because they’ve never considered what it would really cost if they had to go out an replace everything in it, such as after a fire.
One way to get a solid idea on what your personal belongings are worth is to do a home inventory. Use a checklist to properly record and categorize your belongings, and then store a copy outside of your home so you can get to it if there’s ever a catastrophic loss.
Choosing Too High of a Deductible
While it is true that you can save money on your home insurance if you choose a higher deductible, but you want to be cautious if you decide go this route. Raising your deductible reduces your premium, but you also have to come up with that amount if you ever have to make a claim. Do the math on how much savings you’re really getting. At some point, the savings may not be worth it if you don’t have an emergency fund to pay for losses.
Some people use the savings from a higher deductible to establish an emergency fund to build a nest egg. But you have to be disciplined to do this.
Not Notifying Your Insurer of Major Changes
Certain changes merit a call to your insurance representative because they impact your coverage. For example, let your insurer know if you:
- Get married or ask someone to move in with you.
- Do a major renovation, to the kitchen for example.
- Put on an addition.
Changes like these can mean you need additional coverage, and if you don’t notify your insurance carrier you risk having a claim denied because the new detail wasn’t part of the original coverage.
Keeping the Minimum Liability Coverage
The default limit for liability coverage in a homeowners insurance policy is usually $1 Million, and that may be enough for some people. But others, for whatever reason, may have a greater risk of being sued and might want to consider increasing their liability coverage. It’s up to you to determine what’s appropriate for you. More importantly, increasing your liability coverage won’t dramatically increase your premiums.
Thinking Home Insurance Covers Maintenance Issues
As a homeowner, you’re responsible for maintaining your home. That includes issues that might cause damage if you ignore them, like getting a new roof when necessary or dealing with pests. If you don’t take care of these kinds of problems, your insurance may deny a claim for any resulting damages.
At DPM Insurance Group, our brokers and CSRs are here to help you find the best protection at the most affordable price. We don’t work for the insurance companies, we work for you. Click here to find the DPM office closest to you: https://dpmins.com/locations/
Source: Kin Insurance