Five Common Home Insurance Mistakes to Avoid

Committing home insurance mistakes can cost you thousands of out-of-pocket dollars. When disaster strikes, some people are left wondering if they have adequate home insurance. Unfortunately, they only focus on numbers, not on results. These people end up getting underinsured and on the hook for more significant bills.



Saving money is essential nowadays. To make the most out of your insurance, below are the five most common home insurance mistakes that every homeowner should avoid:

1. Considering a Home for Its Real Estate Value Only for Its Cost, Not Value
   Most homeowners are more concerned about the cost of the premium they will pay rather than their coverage. When shopping for home insurance, do not be swayed based on the lowest premiums. Remember to check cheap policies because important coverages may be removed or because the insurance company has less insufficient reinsurance. 
   
   
2. Dropping Flood Insurance
   Standard homeowners insurance policies do not cover flood damages. The flood damage coverage is available from the National Flood Insurance Program and some private insurance companies. However, homeowners must keep in mind that 25 percent of flood losses occur in low-risk areas. 
   
   
3. Selecting Insurance Company Only by Price
   It is a must to choose a company with competitive prices. Also, check if the insurance company should be financially sound and have good customer service. Homeowners forget to check the financial health of the company that leads them into choosing the wrong ones. It is best to ask friends and family members about their opinions and experiences with the insurance company. 
   
   
4. Undervaluing Personal Properties
   Before buying home insurance, homeowners should conduct a personal inventory. Possessions should be checked, and the items should be valued based on replacement value. Keep in mind that most homeowner's insurance policies have limitations on jewelry, guns, and collectibles. Discuss with the insurer if any items are valued more than $1500. 
   
   
5. Expecting Mold Damage Covers
   Homeowners expect coverage for mold damage or sewage backups. Unfortunately, many homeowner's policies do not cover remedies for mold damage or sewage backup. Some may do but may have limits on claims. Check if your home is at risk for these damages based on its age, location, and moisture levels. 

At Brad Spurgeon Insurance Agency Inc., we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (409) 945-4746 or Click Here to request a free quote.