There are various reasons why people live in their particular homes. The people living in your home are important factors that affect the kind of policy you buy. A family living in a rental home has a different policy compared to a family who lives on their own property. Make sure you purchase the right policy; otherwise, you may find yourself with a denied claim because of a wrong insurance policy.
Underinsured the Property
You may have underinsured your home and end up with nothing in the event of a claim. For example, your mortgage company requires you to buy an insurance policy that has the same amount you owe them. If this amount is much less than the value of your home, it’s not helpful the event of a total loss. It is extremely important to study your home insurance coverage to avoid this problem.
Chose the Cheapest Price
While it is normal to check the price of the policy you are buying, it is more important to find out that the coverage includes everything you need. Sometimes, the policy is cheaper because essential coverage was taken out. Make sure you aware of the benefits you will receive in your coverage.
Thought That Your Insurance Covered Property Damage for Others
For example, if you own a rental home and have a landlord policy, know that your policy will not cover any personal property loss of your renters. The people renting your house should buy a renter’s insurance policy if they want to have some protection in terms of liability and personal property.
Assumed that the Policy Included Flood Coverage
A standard homeowner’s policy does not include flooding. You purchase flood insurance separately, which covers property damage due to flooding and storm surges. If you live in a high-risk area that usually experience tropical storms, hurricanes, or torrential downpours, you should buy flood coverage.
These are some of the common mistakes that you may be doing to yourself when buying homeowner’s insurance. One major mistake that you should avoid is to purchase insurance without consulting an insurance agent.
A professional agent will work with your best interest in mind. At Brad Spurgeon Insurance Agency, we aim to provide comprehensive insurance policies that makes your life easier. You can get more information about our products and services by calling our agency at (409) 945-4746. Get your free quote today by CLICKING HERE.