Unlike auto insurance coverage, homeowners insurance is optional in the U.S., and some homeowners treat it as such. More specifically, while 85% of American homeowners have home insurance, most of these policyholders are obliged by their mortgage companies to carry it, as reported by the Insurance Information Institute. Because of their reluctance to purchase a policy, some buyers don’t seek the right information when shopping for homeowners insurance coverage, and therefore, end up making mistakes.
Here are 3 mistakes you must avoid while buying home insurance:
1. Underinsuring Your Home
If you underinsure your home and file a home insurance claim, the payout will not be enough to cover all the necessary repair costs, meaning you’ll be unable to restore your home to its original status. To avoid this problem, purchase homeowners insurance that meets your needs.
2. Buying the Cheapest Coverage Available
To entice potential policyholders, some home insurance companies, especially the dubious ones, offer cheap home insurance policies. However, in most cases, such policies come with numerous exclusions, meaning in the event of a disaster, you would have to cover most of the losses out of pocket. To be on the safe side, buy home insurance from reputable home insurance companies.
3. Not Informing the Insurer about the Mitigation Measures
As per the Insurance Information Institute, most insurance companies offer discounts to policyholders who take proactive measures to reduce damage from named perils. For example, most insurers have discount programs for policyholders who have installed safety and security systems in their homes, or trained their aggressive dog breeds. If you have implemented any of these mitigation measures, make sure to tell your insurer about it.
To keep your home safe, avoid these mistakes when buying homeowners insurance. For further assistance with your homeowners insurance policy, contact the experts at Steve Wilk Insurance. Our new office is at 310 S Main Street, Suite C, Lombard, IL 60148.
Unlike auto insurance coverage, homeowners insurance is optional in the U.S., and some homeowners treat it as such. More specifically, while 85% of American homeowners have home insurance, most of these policyholders are obliged by their mortgage companies to carry it, as reported by the Insurance Information Institute. Because of their reluctant to purchase homeowners insurance, some buyers don’t seek the right information when shopping for homeowners insurance coverage, and therefore, end up making mistakes.
Here are 3 mistakes you must avoid while buying home insurance:
1. Underinsuring Your Home
If you underinsure your home and file a home insurance claim, the payout will not be enough to cover all the necessary repair costs, meaning you’ll be unable to restore your home to its original status. To avoid this problem, purchase homeowners insurance that meets your needs.
2. Buying the Cheapest Coverage Available
To entice potential policyholders, some home insurance companies, especially the dubious ones, offer cheap home insurance policies. However, in most cases, such policies come with numerous exclusions, meaning in the event of a disaster, you would have to cover most of the losses out of pocket. To be on the safe side, buy home insurance from reputable home insurance companies.
3. Not Informing the Insurer about the Mitigation Measures
As per the Insurance Information Institute, most insurance companies offer discounts to policyholders who take proactive measures to reduce damage from named perils. For example, most insurers have discount programs for policyholders who have installed safety and security systems in their homes, or trained their aggressive dog breeds. If you have implemented any of these mitigation measures, make sure to tell your insurer about it.
To keep your home safe, avoid these mistakes when buying homeowners insurance. For further assistance with your homeowners insurance policy, contact the experts at Steve Wilk Insurance. Our new office is at 310 S Main Street, Suite C, Lombard, IL 60148.