Instead of waiting until something terrible has happened, let's review your existing home insurance policy and look out for the following 7 costly mistakes?
1. Assuming that flood damage is covered
After disasters like Katrina, some homeowners could not be compensated for damage since they did not have coverage specifically against flood damage. Even if you have a general home insurance policy, chances are that it does not include compensation for damage and loss of property resulting from floods. You have to buy a specific insurance policy to cover flooding. This is especially true for us here on the Atlantic Coast.
A surprisingly large percentage of Floridians have underinsured their homes. Many take a policy that covers only the mortgage which can be less than the actual value of the home. Others may purchase a policy whose value is equal to that of the house. The problem with this is that when disaster strikes, it will cost much more to rebuild your home especially if you include labor.
3. Unnecessary coverage
As much as underinsuring may cost you dearly, going to the other extreme end will have the same effect. If you insure your house for a monetary value it'll never need you are wasting money. The best thing is to find an insurance expert like us who will appraise your house and tell you exactly what insurance covers you need and what value to insure your house for.
4. Going for the first insurer you find
One of the most essential home insurance tips every insurance expert will emphasize is to shop around for insurance companies before you make your final choice. This is especially important when it comes to cost. For the exact same coverage you will find that different insurers charge differently. Even though the difference may be minimal, when the regular payments are added up, there is a big difference.
The simplest way to find the best coverage at the most affordable rate is to work with an independent agency like ours that has access to multiple carriers. We'll make the carriers compete for your business.
5. Thinking that sewage backup or mold is covered
Just like floods, damage caused by leaking water from your sewage or drain pipes is not included in a general home insurance policy. Here in South Florida this is especially dangerous and that's one of many reasons I encourage people to work with a local agency like ours that understands the unique risks.
6. Assuming that your deductible applies to everything
You may be thinking that when you go to file your claim the deductible will be a certain flat amount like $1000. But in severe disasters like hurricanes you may find that your policy calculates the deductible as a percentage of the total insurance value. The deductible therefore becomes much higher than you would have thought. Make sure that you have asked your agent. If it is flat, good for you, but the policy may cost more. We can help you find the right mix for your budget.
Buying a home insurance policy is one of the best investments you could make; however, if it is not the right policy, you could be throwing your money down the drain and at the same time, putting your home at very great risk. It's important to work with a qualified agency like ours so give us a call today at (561) 406-6153 or click here to get a homeowners quote online.