How a Home Insurance Agent Can Help You Avoid Policy Mistakes

6 Blunders You Need to Avoid When Purchasing a Policy

Let’s face it, homeowners’ insurance and claim processes are often complicated. Primarily, you’d want to know what events your home insurance policy covers. Does it cover property damage? Else, which are the best types of insurance for your needs?

Filing a home insurance claim while reeling from considerable property damage can be stressful. For these reasons, you’d want a home insurance agent to help you work out a home insurance policy from the onset.

Such a plan is key to understanding the gaps (if any) in your insurance coverage. It also equips you with a firm understanding of your home insurance policy and the insurance claim process. Meaning you get to sidestep common home insurance claim pitfalls.

The best part is that you also get to save money while ensuring the insurance policy gives you maximum protection if you ever need to file a claim.

What Does Homeowners Insurance Cover?

Depending on the insurance product, policies are designed to bear the associated costs of rebuilding your home, plus/or replacing your possessions after a catastrophic loss.

So, let’s say you’re buying a new house, renewing an existing home insurance policy, or you’re purchasing this important coverage for the first time. Here, you’d want to make an informed decision regarding this document.

But for many homeowners, the details of their homeowner insurance may elude them until the need arises to file a claim. At this point, an oversight while purchasing your policy might come to light—leaving you underinsured.

Protect what matters most by avoiding these mistakes when choosing a home insurance policy.

#1. Neglecting to Read Your Policy or Understand Terms

Failing to read your home insurance policy may prove costly. At the bare minimum, you need to understand what the policy document covers. All too often, policyholders fail to differentiate coverage terms.

For instance, under the National Flood Insurance Program, does “water backup” mean the same thing as flood insurance? Absolutely not! Water backup is expressly limited to cover the costs related to damage resulting from a backup specific to a sewer drain/sump pump.

Let’s look at these other confusing terms: “Actual cash value” vis-à-vis “replacement costs.” What’s the difference between these two clauses? If you’re to make a claim, recognizing the difference in the meaning of these terms can save you money.

For an actual cash value, an insurance company pays out the worth of your possessions per the time of filing a claim. As a policyholder, the insurance firm won’t reimburse you for the amount you spend replacing these items, let alone the price you originally paid.

That said, when you choose a policy that offsets replacement costs, you’ll have a reasonable amount of cash to help you replace the items you lose.

#2. Not Purchasing the Right Coverage

Here’s one thing to note, some home insurance policies exclude flood coverage. Be sure to discuss with your home insurance agent the many aspects of your policy. This tactic helps you understand the scope of your coverage; plus, extra coverage you can include in your policy to complete your coverage. Many home policyholders inadvertently assume the policy document covers:

• Floods
• Earthquake
• Mold damage
• Sewage backup

#3. Not Keeping a Home Inventory

One oversight that starts way before you incur any property damage entails not having a home inventory. A comprehensive list of your possessions comes into play when you have extensive damage.

It’s best to rely on an inventory rather than on memory when listing items during a claim. A home inventory adds credence to your claim—besides ensuring the process becomes easier and faster.

#4. Poor Communication

During filing a claim, many homeowners are often unclear when detailing the extent of damage to their property. Unclear communication in the event of a claim (by a home policyholder) can simplify the overall claim process. So, when you reach out to the insurance firm’s customer service to describe the damage and report a claim, be exact.

#5. Assuming Your Policy Has a Single flat Rate Deductible

A deductible refers to the amount you need to pay out-of-pocket before a policy kick in and pays out on a claim. Some policies might include a flat rate deductible, whereas other insurance quotes may have percentage deductibles for listed perils. Before making up your mind on a home insurance policy, seek clarity regarding your insurance agency’s single flat rate deductible options.

#6. Failure to Update a Home Insurance Coverage

Each change to your home, including new valuable items you purchase, calls for a similar change in your insurance policy plus insurance costs. Let your insurance agent know of any expensive additions to your home, and your insurance agency will cover the potential loss of the item.

Simplify Your Protection—Save on Your Home Insurance

Life can become difficult—especially when unfortunate events take place. A homeowners’ insurance policy can protect your prized possessions and help you get back on your feet.

Reach out to Coleman Agency, FL today. Our experienced home insurance agent is available to answer your questions and provide relevant information about home insurance policy options. Call us at 727-441-9911 for a quote today from our Clearwater insurance agency.