Top Five Home Insurance Mistakes and How to Avoid Them

​Most homeowners think they are prepared for any damages. Unfortunately, several homeowners do not understand the specifics of their home insurance policy. Failing to understand these results leads to mistakes leaving the homeowners underinsured.

Five Costly Home Insurance Mistakes
Home Insurance covers the cost of rebuilding damaged homes and replacing personal belongings in the event of catastrophic loss. It is essential to make sure not to make mistakes while having home insurance. Here are the top five home insurance mistakes and how to avoid them:
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1. Poor Understanding of Home Insurance Coverage
   One of the most important things many homeowners fail to understand is the extent of their home insurance coverage. Most home insurance policies do not cover floods and other natural disasters. To avoid making this mistake, discuss every aspect of the procedure with the agent. Also, ask for clarifications if there’s a misunderstanding.
   
   
2. Undervaluing the Home and Possessions
   Mere guessing of the value of the home and possessions can cost the owner thousands of dollars in filing a claim. Make sure to research the cost of building materials and list down the complete inventory of the possessions. Also, take note to take the policy which has the most coverage needed for the home. 
   
   
3. Choosing a Deductible That is Not Affordable
   Although a large deductible means a lower insurance premium, people are tempted to accept a high percentage. Unfortunately, homeowners should never take a high deductible they cannot afford. To avoid a potentially huge financial hit, make sure to take a deductible that is affordable and not heavy on the pocket. 
   
   
4. Not Knowing Potential Risks
   The location of the home is a huge factor in getting home insurance. Although the house may not be in a high-risk flood area, weather patterns change. There are still several risks, like thunderstorms and landslides, that pose a threat to the home. 
   
   
5. Choosing the Wrong Insurance Company
   Many homeowners do not check on the history of the insurance company, and this is a mistake. Avoid choosing insurance companies based on the cheapest but based on the history of how they handle claims. Most affordable insurance companies leave their clients without the coverage they need.

Home Insurance Policy is a must for every homeowner. It protects the homeowner in the event of a loss. Making a mistake can cost homeowners thousands of dollars in the end. Make sure to discuss with an independent agent before making the final purchase.

At Insurance Marketplace, Inc., we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (541) 779-0177. Get your free quote today by CLICKING HERE.