Buying a home is an equally exciting and daunting time. In the process of home buying, you will also need to consider homeowners insurance. This coverage is required by most lenders if you take out a mortgage. But before you Google a policy and take out the cheapest cover, here are some must-know homeowners insurance mistakes you should avoid making. From homeowners who made these errors, be mindful when taking out your own home insurance in Connecticut, CT.
Home Insurance Mistakes to Avoid
- Buying the cheapest policy available
There are many things in life where you get what you pay for. Homeowners insurance is certainly one of them. The cheapest policy out there will not likely be the one that suits your property or pocket. Although you may be tempted to secure the first, cheapest policy you see online, keep in mind that your home and assets are relying on secure coverage.
Not all insurance companies and homeowners policies are the same. When shopping for coverage, look for a policy that suits your needs and work with an agent who can help you save money. Working with a reputable insurance agency is important, too. If you ever need to file a claim, you don’t want to have to deal with an agency that will fight you on your claims.
- Not buying enough coverage
Similarly to the first point, many homeowners purchase a policy with bare-bones coverage to satisfy their mortgage lender’s requirements in order to save money on their premiums. This can be a costly mistake to make, as the mortgage amount may represent only 70 to 80 percent (or less!) of a home’s value. That means if an accident does occur, you could face serious financial hardship because you didn’t take out enough coverage. For maximum protection, work with a trusted insurance agent who can help you understand the coverage needed for your home.
- Assuming you have coverage for all disasters
When homeowners take out home insurance, it’s common for them to scan through a policy without really registering what is – and isn’t – covered. While most standard policies cover the major disasters, such as fire, theft, windstorms, and more, you need to also pay attention to the catastrophes. Standard coverage typically excludes flood damage, earthquake damage, mold damage, and sewer backup damage. For coverage, you may need to take out separate policies or add on endorsements to your home insurance. Be sure you protect your property from these disasters so that you have coverage if the worst does happen.
Secure homeowners insurance without making these mistakes. To find home insurance that suits your needs and budget, visit the team at C.V. Mason Insurance Agency. Our home insurance policies work to protect residents in Bristol and neighboring cities in Connecticut. Give our experts a call for more information.
