People often have concerns about their home insurance policy. Will my policy protect me if someone breaks in and steals my jewelry? What if my neighbor’s tree falls on my house?
Filing an insurance claim can be stressful, especially if you don’t have the right type of coverage. It is easy to make a mistake, and when you do, the fear of losing everything you have is real. Finding answers to questions can be difficult when you don’t know where to start, but one way to avoid these common mistakes is to do your homework.
Protect yourself from homeowner pitfalls with this guide for common insurance mistakes.
Assuming “It Won’t Happen to Me”
The Federal Emergency Management Agency (FEMA) estimates that 25% of insurance claims come from outside a high-risk flood area, and one inch of water can cause $25,000 in damage to a home. To avoid the stress of dealing with the aftermath of an unpredictable disaster, review all your home insurance policies and make sure you are sufficiently covered.
Selecting the Cheapest Policy Right Away
While it can be tempting to try to save money on insurance, going for less coverage than you need is usually not a good idea. Not only will you end up paying more in the long run if you need additional protection down the road, but a lack of coverage can leave your finances vulnerable.
Not Knowing What Is or Isn’t Covered
Insurance can be tricky and reading through policies is often frustrating and hard to understand. However, being properly insured is important. It is necessary to conduct adequate research before selecting the right policy for you. For example, many may assume flood damage to your home is protected by water-backup coverage. It is not. Be sure to educate yourself on the specific coverages your homeowner’s policy includes.
Insuring Your Home for its Market Value
Don’t get stuck paying more than you need to. Most people are quick to insure their home for its market value, but in reality, homeowner’s insurance is designed to cover the replacement value such as the labor and material costs needed for repairs. Since the market value includes the value of the land, you could be over insured.
The best way to avoid a serious problem is to understand what you’re insuring, how much coverage it has, and compare that to your current insurance policy. Our team here at Henry Insurance is a trusted resource to our clients. Give us a call at 225-927-0451 and we’ll be happy to help you make better decisions, no matter the circumstance.
