You never know when something is going to happen to your home and if disaster strikes, you want to be ready. Homeowners need insurance for things like storms, fires, and other such incidents. You never expect it to happen to you, but if it does, at least you have something to fall back on. Homeowners insurance might seem like a cost you don’t really need, but when you have cause to use it, you’ll be glad you’re there. So when you’re shopping for homeowners insurance, make sure you get just what you need and don’t fall for any of the many pitfalls that exist out there that could trap you later. Here are a few mistakes some homeowners make:
Under-Insuring A Home
One of the biggest things homeowners do is failing to have enough insurance to cover rebuilding your home if it is completely destroyed. Many homeowners only buy enough insurance to cover the amount on their mortgage, which is usually only 80-90 percent of the value of the home. And others only ensure their current home values without thinking about increases down the road, improvements they’re making and so on. It can be hard to figure out exactly what you would need to rebuild, but professionals can help with those numbers.
Assuming You Have Certain Insurance Coverage
It’s a huge mistake to make assumptions of any kind when you are looking into homeowner’s insurance. If you live anywhere near a lake, river, ocean, or another floodplain, for example, you’ll want flood insurance, but you can’t assume it’s included. You might have to have a separate flood insurance, especially in areas that are liable to flood. This can become a huge problem if your home floods and you have nothing to back you up for the damages.
Thinking You Have One Deductible
You probably think you have one maximum expense out of your own pocket if you need to use your policy, but that’s usually incorrect. In the case of major storms, you will likely have to pay your deductible, but also a percentage of your home’s value. If your house is $300,000, you could have a $15,000 deductible when you file your claim. You will want to ask your agent about different deductibles that could come up based on the cause of damage and inquire about getting a policy with a flat rate no matter what happens. If you do end up with a large claim limit, ensure your savings has enough to be your back up.
Looking For The Right Homeowners Insurance?
Finding homeowners insurance that covers you in the event of any possible disaster can sound harder than finding a home in the first place. But there are professionals on the job who are both honest and trustworthy. Contact Nickerson Insurance Services to ask questions about homeowners’ insurance and we’ll clear up any mistakes you might have made on your own. Homeowners insurance is one of the most important policies you’ll carry in your lifetime. You need to make sure it’s the right policy for you.