Know what they are so you can avoid them
Here are the 10 biggest mistakes people make when shopping for homeowners insurance:
Choosing a policy based on price alone. It's important to compare quotes from multiple insurers, but don't just focus on the cheapest policy. Make sure the policy you choose has the coverage you need and that the insurer is reputable.
Underestimating the value of your home. When you're buying homeowners insurance, you'll need to specify the value of your home. If you underestimate the value, you may not be covered for the full cost of rebuilding your home if it's destroyed.
Not getting enough coverage. Homeowner's insurance policies typically cover a variety of perils, such as fire, theft, and wind damage. However, some perils, such as flood and earthquake damage, may require additional coverage. Make sure you have the coverage you need to protect your home and belongings.
Not factoring in discounts. Many insurers offer discounts for things like bundling homeowners insurance with other policies, installing security systems, and having good credit. Make sure to ask about any discounts that may be available to you.
Not reading the fine print. Before you sign a homeowners insurance policy, be sure to read it carefully. Understand what is and is not covered, and what your deductible is.
Not updating your policy regularly. As your life changes, so should your homeowner's insurance policy. For example, if you get married, buy a new home, or start a business, you may need to update your coverage.
Not filing claims properly. If you need to file a claim with your homeowners insurance company, be sure to follow their procedures carefully. This will help ensure that your claim is processed quickly and efficiently.
Not keeping your insurance company up-to-date on changes to your home. If you make any changes to your home, such as adding a new deck or renovating your kitchen, be sure to let your insurance company know. This will help ensure that your coverage is adequate.
Not understanding your deductible. Your deductible is the amount of money you have to pay out of pocket before your insurance company starts paying for a claim. Make sure you understand your deductible before you need to file a claim.
Not shopping around for a better policy. Even if you're happy with your current homeowner's insurance policy, it's a good idea to shop around every year to make sure you're getting the best possible rate.
By avoiding these common mistakes, you can help ensure that you have the homeowner's insurance coverage you need to protect your home and belongings.
If you haven't checked out my PennyWise Financial Podcast, watch a look at a clip from our latest show with guest Liz Biehler from The Liz Harley Agency with Allstate in Victor, NY. Scroll down to watch the entire episode. It's available on all major podcast platforms like Apple, Google and Spotify and YouTube.
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