Buying home insurance is intimidating.
For new homeowners and multiple property owners, buying insurance for your home can feel confusing at the best of times. With so many policies, prices and companies, the whole process can be overwhelming.
This is where most people make serious mistakes when choosing their home insurance. It’s easy to choose a policy out of exhaustion, only to find out years later that it doesn’t offer what you need.
By understanding the specific mistakes to avoid when applying for home insurance, you can choose the right plan with the best coverage for your property and family.
1. Focusing on Price Over Coverage
Buying and owning a home is not cheap, Naturally, you’ll want to save money wherever you can. While you can find deals for your furniture or appliances, you should always be cautious about choosing the “cheaper” home insurance policy.
The price could be lower for a number of dangerous reasons:
- Vital coverage is removed
- The company has poor reinsurance
- Undervaluing your home
Just because the policy is inexpensive doesn’t mean it’s worthwhile.
2. Not Reading The Entire Policy
Modern home insurance policies are designed to be customized to meet your family’s specific needs. That means you have a lot of choices when picking the best policy for your home.
It also means that there’s a higher chance your policy could be missing important aspects. Maybe you don’t have the coverage you need, or it doesn’t include specific insurance, or there’s a stipulation that could prevent you from getting the help you need.
Always read your policy carefully, and don’t be afraid to look up terms you don’t fully understand.
3. Underinsuring Your Home
A common way homeowners try to save on their home insurance is by reducing their coverage to just the bare minimum. Usually, people will buy enough insurance to cover just their mortgage payments and not the actual value of your home.
If your home faces serious damages and needs to be rebuilt, your mortgage value probably won’t cover that cost. Now you’re left paying mostly out of pocket.
It’s always best to buy enough coverage to cover the cost of rebuilding your entire home. While more expensive, you’ll be doing your future self a favor.
4. Paying Too Much or Too Little
When you blindly pay for your home insurance, there’s always a risk that you’re not paying the right price for what you need.
That could mean you’re paying too little and not receiving the coverage you need. It could also mean you’re paying too much and can barely make your monthly premiums. With either option, you’ll be paying for it in the end.
That’s why it’s always best to start with $500-$1,000 deductibles and then adjusting as your needs change.
Talk With The Experts
Finding the right home insurance on your own is time-consuming and stressful. That’s why these mistakes are so common.
Rather than leave your home’s protection to chance, you should work with professional experts to find the right fit for your needs. Sanford Insurance has been helping Richmond’s homeowners protect their homes without breaking the bank for over 30 years.
Call us to get a free quote and discuss your home insurance options.