Avoid These Five Common Home Insurance Mistakes
Homeowner's insurance is incredibly important for homeowners. In the event of a natural disaster, theft, or other incidents, your insurance will provide the funds to recoup your losses. Home insurance may also be a requirement to get approved for a home loan.
On the other hand, while opting out of homeowners insurance could save you money on monthly payments, you could lose everything if something terrible happened. We don't want to see that happen to you. Keep reading for the top five mistakes you need to avoid when buying or renewing home insurance in Sherwood Park.
Under-Insuring Your Home
Some homeowners decide to under-insure their homes to save money on their insurance premiums, deductibles, or monthly payments. However, doing so could cost you big-time in the future.
If your entire home was destroyed in a fire, earthquake, hurricane, or some other natural disaster, under-insuring your house could leave you high and dry. Typically, a homeowners insurance policy should cover the home's entire value or the cost to rebuild it from the ground up.
If you report that your $250,000 home is only worth $150,000, for example, you would be out $100,000 after a catastrophic incident.
Not Making an Informed Decision About Your Deductible
Another mistake homeowners make is getting home insurance quotes and choosing the highest deductible option to save money on the premium and monthly payments. It's an attractive idea, but it requires a baseless faith in the idea that you'll never need to make an insurance claim.
As a result, if an incident does happen, the homeowner ends up paying a high deductible, which could have been avoided. Instead, take time to talk with your insurance agent to make sure you're making the right decision. Typically, homeowners find a happy medium between a high deductible and a high premium.
Not Customing Your Coverage
Finding the best home insurance in Sherwood Park means customizing your policy for your unique home, possessions, and circumstances. Unfortunately, when working with home insurance companies, many homeowners fail to customize their plans. This can lead to major issues in the event of a fire, theft, or other tragedy.
For example, general homeowners insurance provides coverage for your possession at 50% of the home's value. If you have precious items, you'll want to expand on that coverage.
Assuming Floods Are Covered in Your Policy
Whether you're looking at home insurance in St. Albert or Sherwood Park, you need to make sure your policy covers flood insurance. Many homeowners make the mistake of assuming flood and water damage are covered. In truth, flood damage typically isn't covered by standard policies, though you can opt to have it included.
Assuming You're Covered for MoUld and Sewage Backup
Like flood damage, mould damage isn't necessarily guaranteed by a standard insurance policy. However, if you have flood damage coverage, mould as a result of flooding is likely covered.
Similarly, you may have to opt-in for sewage backup coverage. This may be particularly important if the backup results in flooding, water damage, and harmful mould.
Looking for Home Insurance in Sherwood Park?
We hope you know a little more about your home insurance needs and the mistakes you need to avoid while taking out a policy. If not, feel free to look through the rest of our articles.
And if you're ready to look at your options, contact Tailor Made Insurance to talk about home insurance in Sherwood Park. We also offer mobile home insurance and life insurance in Sherwood Park and the surrounding areas.