Common Mistakes Homeowners Make When Purchasing Homeowners InsuranceArticle Posted by Expert Author: Carly Jorge on 03/29/2013
It can often feel complicated to purchase homeowners insurance but the truth is that if you know what to do – and what not to do – it's really rather simple. One of the most common mistakes people make is to undervalue their home. Instead of considering how much you currently owe on your house or the appraised value, consider how much it would actually cost to rebuild your home. Remember that homeowners insurance protects you from the worst possible events – including the total destruction of your home. You want your policy to be enough to not just give you the money your home is worth but to rebuild it.
Another common mistake homeowners make is to assume that their policy covers them in the event of a flood. This is an understandable mistake – after all, it covers other disasters, why not floods? The truth is that in many areas of the United States, flood insurance is separate and is not included in a basic policy. This doesn't mean that you have to buy an entirely separate flood insurance policy. In fact, in most cases you can simply add it on to your current policy for an additional fee. Just be sure to read the fine print.
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