Common Mistakes When Buying Homeowners Insurance

Are you on the hunt for homeowners insurance? If so, you may want to do a bit of prep and research beforehand to ensure you’re doing all the right things. A little consideration can mean the difference between the right, affordable coverage, and a policy that leaves you out in the cold when the worst happens. You can learn from the thousands of homeowners that have come before you and learned the hard way. Take a look at these common mistakes homeowners make when finding homeowners insurance on Long Island, NY.

Mistakes When Purchasing Home Insurance

  1. Only focusing on price

It’s one of the first things homeowners do when they start shopping for coverage – looking at the price. Similar to everything else you purchase, it’s important to understand exactly what you’ll be receiving with your home insurance as well. Cheap policies tend to be cheap because they lack valuable coverage, meaning your finances are at risk if you need to file a claim. Just like you wouldn’t buy something that’s missing pieces from a store, get what you need in your homeowners’ coverage. You can work with insurers to find suitable policies without sacrificing coverage.

  1. Not reading through the exclusions in the policy

Insurance does a great job at protecting your home and belongings. However, every policy will have its limits. Your homeowners policy is meant to protect you in the event of a major, or even semi-major, disaster. Ensure that your policy could handle this by examining the limits and exclusions. You may find that your policy has some exclusions that you thought were covered, which means you will need additional cover.

  1. Underinsuring your home

When you insure your property, keep in mind that the price you insure it for will not be the same as the price you paid for it. The insurer will take down important information about the building to calculate the cost of rebuilding it from scratch if the worst happens. A great deal of this will depend on material and labor costs, which tend to fluctuate. If you have an older home with more characteristic features, you may find that this adds to the cost of rebuilding.

  1. Thinking flood insurance is included

Many people are not aware that a standard homeowners insurance policy does not cover flood damage. It will cover water damage in some instances, such as a burst pipe, but it will not cover flooding from sewers, natural disasters, and more. In order to acquire protection against floods, you will need to purchase a separate policy. Your insurance agent can help you learn more about whether such a policy makes sense for your property. Keep in mind that there is a 30-day waiting period required before a flood policy goes into effect, so it’s important not to purchase this coverage at the last minute.

  1. Not insuring your high-value possessions properly

A standard homeowners policy covers personal possessions, but if you have items of high-value, such coverage may not be enough. At most, your standard policy maybe 50 to 70 percent of the total value of these possessions. However, items like artwork, jewelry, golfing equipment, musical instruments, and precious collections will have sub-limits. Check your policy carefully. If you see sub-limits, buy an endorsement to ensure that these items are fully covered.

Now you know how to avoid the most common mistakes homeowners make when securing home insurance coverage. Your insurance is there for you to rely on when the worst happens, so be sure it is the right policy for you and your property. Do you need help securing the right homeowners’ insurance for your needs? Contact the team at Premier Risk, LLC to get started! We serve Long Island and neighboring cities in New York.