Making a mistake when buying any type of insurance can prove to be very costly, especially in the case of home insurance. After all, for most people their homes are the most valuable asset that they own. To avoid paying huge premiums for the policy and only receive minimum gains in return, it is wise to choose the plan carefully and avoid some common mistakes that have been listed below:
Mistake #1 Failing to shop around
There are many insurance providers that provide a wide range of policies, which differ widely in terms of premiums. This means your policy premium for a specific product with one company could be significantly higher than that from the other. Therefore, it is imperative to explore several carriers to get the best home insurance policy which offers you quality coverage at a price you’re comfortable with. Also, it is wise to shop for your home insurance plan annually to get a better deal. Price should not be the only factor to consider your policy as the best one or not – for even some cheap plan could be a waste of money.
Mistake #2 Underinsuring your home
Choosing inaccurate coverage can come in many forms: confusing the replacement cost of your home with its market value, and even underestimating or overestimating the amount of contents coverage you need. Dwelling coverage is what most people think of when they consider home insurance – it’s the part of a policy that covers if your home gets damaged due to reasons such as storm, earthquake, flood, etc. You need enough dwelling coverage to rebuild your home from scratch. That amount can differ greatly from how much you owe on the home or its market value. So to determine how much dwelling coverage you need you can use a home insurance calculator in order to make a better decision. บริษัทรับสร้างบ้าน
Mistake #3 Sticking with just the basics
It is easy to believe that the basic home insurance policy will cover you from every hazard that could damage or destroy your dream abode. To some extent, these policies will protect your home from most of them, but they won’t protect you from events like floods, earthquakes or hurricanes. Therefore, to safeguard yourself from such situations, it is prudent to consider your overall situation before you sign on the dotted lines, and if you live in some area that has higher risk of being devastated by the earthquake, flood or storm, etc., don’t hesitate to raise your home insurance policy by adding on certain riders that can better protect your home and you in such circumstances.
Mistake #4 Assuming a basic policy will cover for mold or sewage problems
Typically people assume that their basic home insurance policy will cover for mold or sewage backup problems too, But the sad and simple truth is that many policies don’t offer protection in such scenarios. If at all you are unsure of whether the home insurance policy you own or are considering to buy covers these problems, pick up the phone and call up your broker or agent. If he says they aren’t included in your particular policy, ask if the company offers them with some rider, and if so, how much that extra coverage would cost you. One word of caution, any policy with mold protection can be expensive, still it will be worth purchasing if you live in a humid region.