Both veterans and first-time home insurance buyers make mistakes. Errors may include not buying enough coverage, having exclusions in your policy that you don’t know about, or even buying too much coverage.
No need to worry, because in this article we’ll cover some of the main things you should focus on when buying home insurance.
When shopping for insurance, most people are focused on finding the best price. Finding a good deal is important, but make sure that even if you are buying cheap insurance, it should be adequate to provide the needed coverage.
2) Avoid purchasing a policy for the wrong occupancy
Some people live in the house that they own, but some just rent. There are some cases when the houses are unoccupied. These are scenarios that need insurance. Choose the right coverage for the type of occupancy so you can avoid claim problems in the future. Also, ensure that you are updating the policy if there are changes in your occupancy.
3) Failure to understand exclusions to your policy
It is important to correctly read the policy because it can avoid confusions in your coverage as well as its exclusions.
4) Check the inclusion of flood insurance
People are usually confused with flood insurance coverage because most people are unaware that the homeowner's insurance policy does not cover flood. You can always purchase a separate flood policy to make sure you have coverage in the case of a flood.
5) Underinsurance of your home
The only concern of a mortgage company is the protection of their asset. They will typically only require enough coverage to cover the amount of the mortgage. Through this, there will be nothing for you, and everything will go straight to the bank.
6) Choose an “actual cash value” coverage over “replacement cost” coverage
It is better to opt for the “replacement cost” than “cash value” because it can provide a brand new replacement for any covered item. "Actual cash value" only provides the item's reimbursement minus depreciation.
7) Lower your premium by increasing the deductible
It is a big no-no to reduce your premium by decreasing the coverage. Over time, the cost to rebuild a home will typically go up because of inflation and cost of materials, so if anything it is better to periodically increase your coverage. In order to save on premiums, increasing your deductible is better - but make sure you always have the deductible amount in savings in case of disaster!
8) Check if your policy will cover other people's personal property
Whenever you rent a house, always remember that your "landlord" policy may not cover the loss of individuals who occupy the property. Therefore, tenants should also have an insurance coverage for renters. It provides liability and covers their personal property.
9) Non-involvement of the “pros.”
Whenever you get an insurance policy, make sure that you will get all of your needed coverage. It is best that you properly understand the system. Always ask questions to your agent if there is something that may not be clear to you.
Start protecting your home today. We at American Trust Insurance will do everything to help you get the right coverage for you.
Protect your home today. We at American Trust Insurance can ensure you have the correct coverage for your unique needs. Inform us how we can help you by calling 305-270-2220 or visit us at our office. You may get a free quote here.