Common Home Insurance Coverage Mistakes That Can Cost You Money

by Leon on March 28, 2014

home insurance tipsWhen it comes to buying home insurance, you may think that it’s just as simple as walking in the door, purchasing the right policy, and going on your merry way. But there’s a lot more to the process, especially if you want a homeowners policy that is tailor-made to fit your needs. And the unfortunate truth is that you’re likely to make some cardinal mistakes along the way that will lead to higher rates. That said, so long as you have an idea of what might go wrong, you should be able to avoid any serious mistakes and save some scratch along the way. Here are some home insurance coverage blunders that could end up costing you.

The biggest mistake most homeowners make is failing to exercise due diligence when it comes to shopping around for insurance. As a consumer, it’s your duty to comparison shop in order to get the best products and services at the most affordable rate, all things considered. So why is it that so many homeowners simply sign up with whatever insurance company their family has been with for generations, or worse, choose the one that is the cheapest without considering that it might not provide the best coverage? It is not the job of your insurance provider to make sure that you get exactly what you’re looking for – it’s your job to find it. And if you end up overpaying because you refused to shop around, there’s no one to blame but yourself.

Another major issue revolves around selecting the wrong policy. This could mean paying for a policy that doesn’t really meet the needs of your home or your area. If, for example, you live in a region prone to natural disasters like earthquake, wildfires, flooding, tornados, hurricanes, blizzards, and so on, you likely have access to disaster insurance policies in addition to your regular homeowners insurance. And you might also want to think about adding coverage for potential liability issues. What if you have a pool in your yard? Or what if your dog is aggressive? How about if you decided to run your business out of your home to save money and one of your workers trips and falls down the stairs? Your insurance may not offer such liability coverage, but if they do you’ll almost certainly have to pay extra. And don’t forget to ask about discounts, say for bundling policies.

The worst mistake of all, though, could be allowing your insurance to lapse, either on purpose or because you forgot to pay the bill in a timely manner. This is a very serious blunder that could create insurance coverage problems and leave you footing the bill for any loss or damage to your property, which would be a shame after you paid so many insurance premiums on time. Of course, you can always set yourself reminders so you never miss a payment. And your agent at State Farm or the nearest Pronto Insurance Franchise can probably provide you with the valuable information you need to avoid any errors or mishaps when it comes to buying and using your home insurance coverage.

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