When, purchasing a homeowners insurance policy, it's important to avoid these 5 common mistakes in order to ensure you protect your investment:
Inadequate Coverage: This is one of the most common issues. Some homeowners purchase a policy with the lowest premium possible, without considering the potential cost of repairing or rebuilding their home. Make sure your policy covers the full cost of rebuilding your home and replacing your possessions in case of damage or loss.
Inaccurate Valuations: This can factor into inadequate coverage above. Underestimating the value of your home or possessions can result in inadequate coverage, while overestimating can lead to higher than needed premiums.
Failure to Report Claims in a Timely Manner: Insurance policies have a time frame for reporting a claim, and failing to do so within that parameter can result in denial of coverage.
Non-Covered Losses: Not all losses are covered under a standard homeowners insurance policy. Common exclusions include damage caused by floods, earthquakes, and intentional acts of damage. Review your policy, understand what is covered and what is not, and consider adding riders to cover your specific needs.
Insufficient Documentation: Failure to provide adequate documentation of the damage/loss can result in delayed or denied claims.
What's the best way to avoid making these and other common homeowners insurance mistakes?
Work directly with an experienced insurance expert who understands the subtleties and complexities of ;homeowners insurance options.