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9 Mistakes to Avoid Upon Buying Home Insurance

5/23/2017

24 Comments

 
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Purchasing home insurance is not easy. There are a lot of policy types, providers, and numbers that may or may not be part of the standard coverage.

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.
1)  Primary Focus on the Price
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.​
24 Comments
Katie Wilson link
4/25/2019 07:17:09 pm

You make a lot of good points when you suggest how to find the right homeowners insurance. I recently graduated from law school and am looking to buy my first home. When I find somewhere to buy and need to insure it, I'll have to remember your advice about how you want to keep your premiums high to allow your deductible to be low.

Reply
Gillian Babcock link
6/6/2019 03:04:16 am

My sister bought a home and she wants to make sure that the repairs will be covered including food damage. It was explained here that she should understand the exclusions to the policy. Furthermore, it's recommended to consult insurance experts when in need of home insurance.

Reply
David Johnson link
6/26/2019 10:45:24 am

Thanks for explaining that the mortgage company will usually only require enough to cover the amount of the mortgage. I'm looking at buying a new home and will have to consider all of these things, including mortgage and insurance. After reading this, I'll definitely need to make sure I'm not under insured.

Reply
Dennis Sanchez link
7/22/2019 03:41:44 pm

You made a great point when you mentioned that questions should always be asked if there is something that is hard to understand. My wife and I are graduating from school soon and we will be looking for a home to buy. We will keep this information in mind as we also look for a good insurance company to use.

Reply
Randy Chorvack link
7/31/2019 08:17:31 am

I like how you said your insurance should be adequate to provide the needed coverage. While it's tempting to go for the cheapest option, that may not always be the best one. You always want quality over quantity.

Reply
Stefan Bradley link
8/7/2019 11:32:09 am

It makes sense that you should thoroughly read your policy so that you can be sure that there aren't any exclusions that you were unaware of. My wife and I have just purchased our first house, and we want to make sure that our home is protected from the poor weather conditions that our neighborhood experiences. I'll be sure to read our policy once we find a homeowners insurance provider.

Reply
Callum Palmer link
9/25/2019 07:41:35 pm

I'm looking to buy a home. Once I do, I'll need to get insurance. I'll be sure to not make the mistakes you listed here.

Reply
kate hansen link
10/24/2019 01:11:07 pm

It was helpful when you said that it is important to read the policy. My husband and I are planning on buying our very first home since getting married and we need to find insurance for it. Thank you for the information about getting home insurance!

Reply
Tori Raddison link
1/8/2020 09:43:16 am

I completely agree that you want to make sure that your insurance is adequate and gives you the coverage you need for everyday life. You don't want to go with the cheapest option just to find out it's missing something important. My husband and I will have to do our research and learn which one is best for us.

Reply
Taylor Anderson link
2/11/2020 12:44:36 pm

I like how you mentioned that increasing the deductible can lower your premium when you buy homeowner's insurance. My friend is looking to buy a house, so these tips could help her get homeowner's insurance. Thanks for the great tips for choosing homeowner's insurance.

Reply
Ron Booker link
2/24/2020 08:01:30 am

You made a good point about reading the policy completely to make sure you won't be caught off guard with any exclusions. My wife and I just bought our first home, and we were discussing about homeowners insurance. We will be sure to remember your tips so we can get the right policy for our new home.

Reply
Derek McDoogle link
4/23/2020 11:26:03 am

It's interesting how you said that increasing your deductible in your homeowners' insurance can lower your premium cost. My mom is looking to buy a house so that she can have an extra source of income but she wants to make sure she does not have many expenses in the new property. I will tell her to compare with different companies the cost of homeowners' insurance.

Reply
Derek Swain link
7/15/2020 10:51:04 am

Thank you for mentioning how your premiums can be more affordable if you raise your deductible. I remember my cousin mentioning how she would like to buy a house before she has her first child this summer, and she needs to find some affordable insurance since she just bought a car and has a limited budget. Maybe she should consider finding an insurance policy that can be adjusted in order to make it align with her needs.

Reply
Adam Golightly link
8/6/2020 01:53:42 pm

My cousin is thinking about buying some new home insurance so that he can take better care and be more protected in his home. He would really like to get some help from a professional so that he can get the right coverage that is suited to his area for his needs and the environment. I'll be sure to tell him about how he should double read the policy and make sure that he understands while making sure that he gets a deal that still gets him the needed coverage.

Reply
Taylor Hicken link
9/17/2020 07:32:01 pm

It's true when you mentioned it is important to find a good deal on home insurance but make sure it provides the needed coverage. My sister just purchased a new house and she is currently looking for a the most affordable insurance for her new home. I would suggest her to look for the best deal that provides the essential coverage.

Reply
Chris Pederson link
10/26/2020 01:11:02 pm

I had no idea that homeowner's insurance doesn't cover flood damage. I thought it did but it's a good idea to make sure you get the insurance that will cover that. A flood can happen because of rain so every homeowner should have it.

Reply
rachel frampton link
11/11/2020 06:28:00 pm

My dad is planning to buy a house, which is why she's thinking of buying personal homeowners insurance policy. Well, I agree with you that it would be a great idea to opt for the right coverage that will suit his needs. I'll also keep in mind to inform him that he must read the policy thoroughly.

Reply
Kristofer Van Wagner link
5/9/2021 10:51:29 am

It is wonderful that this post highlighted that home insurance is important as it acts as a protection for our home against any damages or liability. I appreciate that this post pointed out that when looking through our policies, it is important for us to consider the coverage thoroughly. I will definitely keep this information in mind for future references and ensure that my policy is comprehensive.

Reply
Tex Hooper link
10/7/2021 03:21:05 pm

Great tip about opting for a replacement cost. I need to get a new policy for my sister. Her premiums are too high.

Reply
Mia Evans link
1/10/2022 06:38:16 pm

Thanks for pointing out that we must understand the coverage and exclusions in the home insurance policy to avoid confusion. I will keep that in mind now that I will have my own home this year once I start the process of documents regarding the house I wanted to buy. So I have to understand what to expect when I start looking at coverages as well as to choose the best one for me.

Reply
Hailey Miller link
1/12/2022 10:22:14 pm

Thanks for pointing out that it is essential to correctly read the policy because it can avoid confusion in our coverage as well as its exclusions. This is helpful because my husband and I want to protect our finances to secure our five kids' futures. We are hoping to find an insurance agency on Monday that can provide the best coverage for our two-story house.

Reply
Jeff Carbine link
3/29/2022 10:04:14 am

where the houses are vacant. My wife and I had just built our new home. We will make sure to find the right home insurance provider for our house. Thanks for the tips. It will make lead us to the right track.

Reply
Tex Hooper link
4/11/2022 05:36:48 pm

You make a great pint about making a bigger premium for better coverage. I need to get a new policy with a bigger deductible. I'll have to consider talking to an insurance agent.

Reply
John Carston link
4/11/2022 05:38:27 pm

It's great that you elaborated that to avoid confusion in your coverage, it is necessary to correctly read the policy. Last week, my wife told me that she was planning to have a home insurance plan that covers liability for any property damages, and asked if I had any idea what could be the best option in choosing the best plan for us. Thanks to this informative article, I'll be sure to consult a trusted home insurance center as they can provide more information for the best coverage for us.

Reply



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