With all the options you have these days buying the right kind of homeowner’s insurance can be confusing. Some advertisements want us to believe that purchasing homeowner’s insurance should only take 7 minutes! Making purchases too quickly can cause mistakes. Taking time to consider your options can save you money and future headaches. We found at least five mistakes people sometimes make when purchasing homeowners insurance.
Not having the right value for your personal property
Most people under value their personal belongings. We recommend you complete a home inventory to make sure you have the correct value on all your property. Remember, the insurance covers what it costs to replace the item not what you paid for it.
Improper value on jewelry and other high value items
Most homeowner’s insurance policies have limitations on jewelry, guns and other collectibles. Make sure you identify these if they are over $1,500, (this varies so call us for a review).
Not fully understanding your policy exclusions
Every homeowner’s policy has exclusions. Flood and earthquake are not included in a standard homeowner’s policy. Wear and tear is also excluded.
Not using an independent agent
Buying insurance online or from a national firm is like going to only one car lot and buying the first car you see at the list price. As an independent agent we will search the market and review quotes from many insurance companies.
Using the wrong deductible
Increasing your deductible will lower your homeowner’s insurance premium; however, make sure you have the resources to pay the deductible in the event of a loss. If you increase your deductible to $2,500, do you have the $2,500 to pay the deductible? We can help you understand how deductibles work and set the right one for your individual situation.
As insurance professionals we will guide you through the purchasing process and keep you informed of how these issues will impact your personal insurance program.