Seeing how a hurricane can devastate a city or the entire state makes people wonder what to do in order to have a good home insurance policy. Unfortunately, many people don’t think of getting home insurance until it’s too late. Thus, they end up spending thousands of dollars for repairs after the disaster strikes. Here are some big mistakes that you need to avoid when it comes to getting home insurance.
Considering Only the Cost But Not the Value
Having affordable premiums does not guarantee good coverage. If you're choosing from many options for home insurance, don't choose the cheaper offer right away. Check out the coverage and make sure it’s enough for your needs. Often, home insurance policies are cheap because the insurer has removed some important coverage.
Under-Insuring Your Home
If you deliberately chose the coverage that's not enough to replace your home if it's destroyed, it's not right. Even if you're short by only $20,000, that amount of money could be very hard to find. You'll end up getting paid for your claims but with an unrepaired home. Some policyholders agree on the amount that is equal to their home's current value. The problem is that the cost of rebuilding the house after a hurricane could be higher than that. Thus, always base your coverage on the cost of rebuilding your home.
Thinking You Have Flood Insurance
Don’t assume that your standard homeowner’s insurance includes flood insurance coverage. Flood damage insurance is usually a separate insurance policy. You can also find flood insurance in federal programs. Take note that flood insurance will need a 30-day waiting period after you buy it. Thus, you can’t use it right away. Also, check if your homeowner’s insurance includes earthquake insurance. If not, then you have to get one separately or as a rider.
Undervaluing Personal Property
If you undervalue your personal property, you might have a problem having them replaced in case of theft or destruction of your home. Remember too that a home insurance policy may only payout on the value of the contents of your home. Thus, your insurer will pay out on how much your possessions were worth, not the cost of their replacement.
Assuming You Have Coverage for Sewage Backups and Mold Damage
Many standard home insurance policies don’t provide coverage for sewage backup or mold damage. You have to buy sewage backup as an add-on. You can also purchase mold insurance, but it can be expensive. In the same way, getting rid of mold can be equally expensive. Thus, make a wise decision after weighing your options.
Some Final Words
Homeowners should be extra careful when it comes to making decisions on their home insurance policy. The most important thing to do is to make sure that your coverage is what you exactly need. Otherwise, it will be too late to fix things or to get a separate insurance policy, especially once the disaster has struck.
At Berlin & Denys Insurance, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (800) 946-3303. Get your free quote today by CLICKING HERE.