Common Home Insurance Mistakes & How To Avoid Them

Your home is one of your biggest investments. Home, condo, and tenant insurance is designed to protect you and your belongings from the unexpected. 

Sometimes the unexpected happens and claims are beyond our control, however, many claims can be prevented or reduced with the proper precautions. To learn more about the most common home insurance mistakes and how to avoid them, continue reading.

Failing To Read Your Policy

Insurance policies can be complex and difficult to comprehend, however, this does not let you off the hook. It is your responsibility to understand the coverages in your policy. 

For example, some policyholders believe their comprehensive home insurance policy provides coverage for all water damage, however, water damage to a property can result from several incidents beyond the ones standard insurance covers. Contrary to what most consumers may think, flood is not a “catch-all term” for all forms of water damage when it comes to home insurance. There are add-ons that policyholders can purchase to protect their homes from flood damage.

Not Having The Right Coverage

Without the proper insurance coverage, you could potentially face significant financial burdens. To prevent these complications, it is crucial to have a thorough discussion with your insurance broker. 

For example, if you are anticipating receiving the replacement cost for your possessions, discovering that your policy only provides actual cash value coverage could be disheartening. However, by having a conversation with your insurance broker you can ensure you obtain the coverage that aligns with your expectations.

Failing To Maintain Your Property

To ensure coverage for damages to your home, it is crucial to prioritize regular maintenance. Home insurance is designed to protect against unexpected damage, rather than issues that could have been prevented with proper upkeep.

For example, insurance claims for issues like a leaky roof that could have been addressed may be denied. It is the homeowners responsibility to notice and report potential claims. To avoid such scenarios, it is important to be proactive about maintenance and promptly address any issues that arise.

When it comes to home insurance mistakes and claims, there are many preventative things you can do to stop the damage from happening in the first place. Although it may not be possible to avoid damage in every situation, you can certainly play a big role in keeping it to a minimum. 

Reach out to your insurance broker for personalized coverage that is tailored to meet your needs.