7 Home Insurance Buying Mistakes That You Should Avoid

Can you actually afford not to invest in home insurance? If a devastating tornado would wipe your house off the face of the earth, could you really manage to cover the losses out of your own pockets? Most American families can’t provide an affirmative answer to this question. If this is also your case, note that a homeowner’s insurance policy can help you cope with the most surprising worst-case scenarios turned into reality.

The right policy can cover damages triggered by natural and man-made disasters that would otherwise leave you high and dry and without a roof over your head. But how much is too much when it comes to spending money on home insurance? The truth is that only a limited number of first-time buyers make an informed purchase. The rest of them end up wasting money and fail to get their hands on the type of coverage that would work best for them. This doesn’t have to be your story. If you want to prevent miscalculations, just take a closer look at the 7 most common home insurance buying mistakes made by first-time buyers and avoid them to be able to close a satisfactory transaction.

1)      Not Understanding Exclusions

First of all, do not skip the research phase. Make sure you understand the benefits and also the drawbacks of the policy that you plan to purchase. Analyze exclusions and decide whether or not you actually need to purchase additional policies. For instance, most carriers do not cover damages caused by earthquakes. If you live in a region prone to natural disaster, it is highly recommended to discuss your options with several representatives from different insurance companies and opt for an umbrella policy offering you the highest level of protection against some of the most likely threats that could destroy your property.

2)      Not Being aware of the Benefits Offered by Your Policy

Homeowner’s insurance may give you the chance to minimize the impact of disrupting events that take place outside your home. For instance, if you get mugged by someone while travelling and you lose your favorite rings and your laptop, your insurance company could actually cover these items. In this case, the rule is simple: when you experience a loss, in any given set of circumstances, contact your insurer and ask him if your policy could come in handy, enabling you to replace your lost/damaged/stolen items without spending a dime out of your own pockets.

3)      Overestimating the Benefits of Your Coverage

Some beneficiaries tend to think that their policy covers all the expenses triggered by more or less common issues affecting their household. Obviously, this is a false assumption. The insurance company won’t give you the money that you need to replace your old pipes. It will not pay for a new sidewalk or any other kind of home improvement projects that you may have on your mind; therefore, once you spot a potential problem you should try to fix it in a timely manner to avoid major losses that may not be taken into consideration by your insurer.

4)      Signing on the Dotted Line without Comparing Alternatives

Do you really think that all offers made by insurance companies are identical? Since there is no “one-size-fits-all” solution for clients who are interested in purchasing insurance, most companies bend over backwards to come up with appealing deals. Why accept the first plan when you can shop around to identify special packages leading to considerable savings? Get free home insurance quotes from InsuranceQuoteDepot.com, compare rates and select your favorite carriers. Always analyze multiple options to save money and profit from the best type of coverage.

5)      Not Fixing Pressing Problems in a Timely Manner

It is never a good idea to put pressing problems on hold, especially when these issues could impact the looks and functionality of your home. Address all risks factors in a timely manner; otherwise they could generate huge losses that may not be covered by your insurance company, since they would represent the result of your inaction. For instance, pest or mold decontamination costs could be supported by your insurer. Nonetheless, if you do not take this matter seriously, and it ends up affecting the structure of your home and forcing you to pay for expensive repairs and replacement, your insurance providers may deny your claim since the extensive damages represent the predictable consequences of your careless attitude.

6)      Refusing to Group Your Insurance Policies

Why not buy all the coverage that you need from the same insurer? Grouping your policies is always an excellent strategy leading to considerable savings. Save time and money by purchasing auto insurance, homeowner’s insurance, life insurance, health insurance and small business insurance from a trusted provider.

7)      Opting for a Policy with an Elevated Deductible That You Can’t Afford to Pay

To be honest, it is pretty tempting to opt for a policy with a high deductible, because it allows you to keep your premiums low. But the question is this: can you actually afford to go for coverage with deductibles of 1,000 dollars, 5,000 dollars or more? In other words, in the event of disrupting event causing extensive property damage could you actually take this amount of money out of your pockets to cover a part of the damage? If the answer is no, you may want to consider buying a policy with a lower deductible and higher premiums.

These are only a few of the most common mistakes that people make when it comes to investing in homeowner’s insurance. If you want to minimize risks and avoid miscalculations, start by comparing free quotes online. Analyze rates, decide how much coverage you actually need and how much you can afford to spend on it. Once you have everything figured out, schedule a meeting with your favorite insurer and buy the policy that ensures a maximum level of protection for your property and your most expensive assets.