Owning a home is the dream of many families.  Second to your dream home is ensuring that it is properly protected.  Purchasing property insurance can be a daunting task.  You have peace of mind knowing your home is protected.  Whether you’re with an agent or your partner make sure not to overlook your needs by solely focusing on price.  Know what coverage you want on your home and avoid the following mistakes.

1.     Avoid Focusing on Price

We all base our buying decisions on price instead of researching the product or checking customer service reviews before purchasing.  When it comes to insuring your home, avoid the mistake of focusing only on price.  Choosing price over coverage does not necessarily mean your home is properly covered.  Research the company to have an idea on how it responds to claims, coverage’s offered and customer service.  You do not want a policy from a company whose agents are unhelpful or company closes a few months later.  Your choice of insurance company can be checked through independent rating agencies such as Moody’s or A.M. Best.  Other recommendations can come from your family or friends experiences with their insurance company.

2.     Underinsuring Your Home

Our desires to save money makes us go with the decision to obtain less coverage for less money.  That is when you choose to purchase enough to cover your mortgage or only insure your home for value.  The issue with this is that this could result in less than actual costs to rebuild.  An idea before purchasing property insurance would be to know the value of your home so you do not underinsure.  It is always better to have enough coverage to rebuild your home and be able to replace your personal belongings.  If you are looking to cut costs, raise your property insurance deductible, this could save you money on premium payments.

3.     Assume Flood Coverage is Included

Many homeowners believe their property insurance will protect their home if it ever floods.  Flood coverage is not included in any property insurance and must be purchased separately.  Private insurance companies along with the National Flood Insurance Program (NFIP) are companies that can provide this coverage for you.  NFIP can help you to determine whether your property is situated in a flood zone.  Another website helpful to determine if you are in a flood zone and the risks is www.floodsmart.gov.  Information gained on this website can help you determine the risk level of your property in case of a flood.

4.     Failing to Understand Policy Exclusions

The importance of property insurance is to protect you as well as your home in the event of a disaster.  Make sure you read over the policy to understand what is included and excluded before purchasing property insurance.  Most standard property insurance includes certain natural disasters such as lightning strike, damage from hail, and fire.  Below are exclusions that commonly appear on policies:

  • Neglect
  • Earthquakes
  • Flooding
  • War
  • Nuclear hazard
  • Intentional acts

Contact us for information regarding the difference of prices and coverage for your property as well as a free quote.