For most people, their home is their most precious and highly prized possession. For others, it is a lifetime investment where dreams and memories are made. It would, therefore, be unthinkable if they lost the home or it became damaged to the point it was unlivable. That is why due diligence must be exercised when shopping for home insurance. Below is a list of common mistakes to avoid when looking to purchase home insurance.
Failure to do due diligence
Other than being the primary residence for many, their home is also their most precious investment. It is therefore critical to ensure that it is covered by the best coverage one can afford. Because there are numerous plans and providers out there, it is recommended that one do their homework to ensure they get the best possible coverage.
Being under-insured Understandably, many homeowners look for the best deal when shopping for home insurance. Sometimes they cut corners just to save a buck or two. While there is nothing wrong with wanting most and paying less for it, sometimes this can be costly on the back end especially when disaster strikes such as a flood, or tornado or fire. Sometimes homeowners confuse replacement costs of their home with its market value thus underestimating the amount of coverage needed. When buying home insurance, most people have “Dwelling coverage” in mind. This is the part of a policy that covers the home in the event of common natural disasters such as flood, earthquakes, tornado etc. When it comes to this type of insurance, the homeowner needs enough coverage to completely rebuild the home from scratch. That amount can differ greatly from home to home depending on market value. Consult with an insurance expert such as Marina
Failure to read the fine print
It is critical that the homeowner familiarize themselves with what is actually contained in their insurance policy. Another area where a home could be under-insured is where the homeowner did not know that the policy does not cover common issues like mold or sewage issues. Mold is a common problem especially in older homes located in humid areas and whose drainage systems have succumbed to wear and tear. When shopping for home insurance, it is imperative that the homeowner ask about issues such as mold to ensure they are adequately covered.