Choosing Better Insurance

A standard homeowners' insurance protects your home from damage. The coverage will cater to repairs or rebuilding of your home in case of partial or severe destruction. The policy covers various risks, such as fire hazards, smoke, theft, vandalism, or natural calamities. Other random threats, like falling trees, are also covered.

Here are homeowners' insurance mistakes you should avoid.

Not Purchasing Flood Insurance 

Most standard homeowners' insurance doesn't include flood coverage. So, if you live in a flood-prone area or there's a possibility of your home flooding due to natural calamities, you should purchase a separate flood coverage. The policy will protect your main home, attached structures (garage) and unattached units (animal shed), fence, and extra garage. Also, the policy will cater to personal belongings, such as furniture, appliances, and clothes.

If you have high-value items like jewelry and fine art, you should buy a customized cover for the valuables. Otherwise, the insurance company can only reimburse you up to the maximum capped amount, which might be less than the value of the items. Moreover, some companies can pay for your hotel accommodation if your home is completely damaged and you need somewhere to stay as you wait for your home to be rebuilt.

Not Making Comparisons

Buying insurance is like shopping. You must compare different offers before choosing a suitable policy that meets your needs. The best way to do this is by consulting an independent agent. The agents aren't tied to one company, so they are like a one-stop shop for all your insurance needs. This advantage will save you time as you won't have to call different companies to ask about their services. Also, the agent can help you pick the most reasonable offer as they don't serve the self-interests of a particular company.

Apart from the price of insurance, you also need to consider the coverage and the reimbursement value. For example, a homeowners' policy may be cheaper, but it doesn't cover certain liabilities, such as water damage due to malfunctioning plumbing or fire hazards. The policy may also have a significantly lower maximum compensation value, forcing you to pay out-of-pocket in case you file an insurance claim.

Not Telling Your Insurer About Changes in Your Home

Homeowners' insurance is based on the principle of utmost good faith between you and the insurance company. Therefore, you should reveal any relevant changes in your life that will impact your coverage. 

For example, if you get married, remodel your kitchen, buy a restricted dog breed, or some family members move in with you, you should disclose these details. Failure to reveal this information to your insurer might lead to rejection of your compensation claim or even cancellation of your policy.

To find out more, contact a company like Ronald H. Krupa Insurance Agency.