10 Mistakes to Avoid While Buying a Home Insurance Policy
Underinsuring Your Home to Save MoneyA small monthly premium is great if you have the proper insurance. However, if you sacrifice coverage for a good deal, you might be paying for that mistake in the future. Many new homeowners make the mistake of purchasing the minimum amount of insurance to meet mortgage requirements. This can be a huge mistake when you need to file a claim. The money you save on monthly premiums can be dwarfed by the cost of being underinsured when you file a claim.
Making Assumptions About Home Insurance CoverageMost home insurance policies don’t include flood coverage. Unfortunately, that’s only one of the assumptions that many homeowners make about a basic home insurance policy. Discuss every aspect of your policy so you’ll understand the coverage you have, and the optional policies you can add to complete your coverage. Homeowners mistakenly assume their home insurance policy covers:
- Sewage backup