7 Common Mistakes People Make With Their Homeowners Insurance

Owning a home is a great joy and a big responsibility. It’s important to properly protect your assets with the right homeowners insurance. Unfortunately, there are quite a few common mistakes homeowners make when insuring their home and assets. Take a moment to learn from these mistakes and compare them against your current coverage.

Having too much or too little coverage

When it comes to insuring your home, it’s important to find the right balance of insurance that is not too much or too little. If you’re over-insured, you’re going to be paying more for things you don’t likely need. If you’re underinsured, you may run into damages your insurance doesn’t cover, causing you to pay for repairs completely out of pocket. An experienced insurance agent can help you find that “just right” amount of coverage unique to your home and family.

Setting your deductible too high or too low

A low deductible sounds great, but keep in mind your premiums will also be higher as a result. A high deductible may save you some money on your premium, but if you can’t afford to meet the deducible when you need to file a claim, that will leave you in a tight spot. Similar to finding the right amount of coverage, you also need to find the right deductible. Think: How much money can I immediately and reasonably pay out of pocket if something goes wrong?

Not understanding the extent of your coverage

Don’t sign off on your policy without reading the fine print and asking questions. Many homeowners make the mistake of assuming their policy will cover everything that could happen to their home. Wrong! Your policy covers what it says it will cover, so read it. Issues like flooding, earthquakes and mold may require additional coverage.  If you have special items in your home, they may require special coverages too.

Failing to report any life changes

If your family gets a dog or remodels the basement, you may not think this is something you need to share with your insurance agent. It’s always better to be safe than sorry. Some “life changes” could impact your insurance policy. Check with your agent who can advise if this is something that will require different or additional coverage. In the case that a change to your house could save you money, like adding a security system, it’s always worth the ask!

Not making an inventory of your property

If your house caught fire tomorrow and everything you owned was gone, could you recall all your household items by memory? It’s not likely any of us could. This is why it’s so important to take a photo inventory of each room in your home, and pictures of the outside of your house. Place the file with the photos in a fireproof safe. Don’t forget to update this inventory if you purchase a new item or change something in a room.

Not taking immediate action to report or resolve an issue

If you spot something that could be mold, don’t drag your feet to get it looked at. What might not seem like a big deal now, could cost you big down the road. Not only will the issue continue to get worse, your insurance may not cover the repairs since you did not take action when you first identified a problem.

Forgetting to regularly review your policy

On an annual basis, you should review your homeowners insurance, and all insurance policies with your insurance agent. They will be able to ask you questions on things that have changed in your life over the past 12 months. They can also advise you of changes to your policy or other policies that may be a better fit for your current life situation. One annual meeting can save you both time and money – make it a priority!

Have you run into issues with your homeowners insurance? Ask a question or share and example from which others can learn!