Five mistakes to avoid when buying home insurance. Home insurance contracts are somewhat confusing documents. They use rare terms in colloquial language. Therefore, when acquiring this policy we could make mistakes that will remain hidden until the moment of making a claim.
So that it doesn’t happen to you, we share with you the mistakes you can avoid.
- Mistake # 1: Not asking the right questions
The purpose of the policy is to protect your property. One may mistakenly think that some element of it is covered, even assuming that he has understood the entire letter of the document. To avoid these mistakes, it is best to ask directly: What does this policy cover? What is excluded? How to make a claim? How much is the deductible? Do I need other coverage? Is there a discount available? - Mistake # 2: Insuring the home for market value, not replacement cost.
When you insure your home for the replacement cost, the insurer will reimburse you for the cost of rebuilding or repairing your home, including the cost of labor and materials at the time the damage occurred. The replacement cost is subject to the limits marked in the policy. - Mistake # 3: Picking a Too High Deductible.
There are policyholders who acquire a very high deductible to keep the price of the premium at bay. However, they forget that, when making any claim, the first payment comes out of your pocket and is precisely the deductible. Therefore, the logical thing is to choose a deductible that one can assume. - Mistake # 4: Assuming the property is flood protected.
Most homeowner’s insurance policies exclude flood damage. Flood insurance must be purchased separately. - Mistake # 5: Not communicating the big changes that occur in the home and family.
You have to update your company with certain necessary information. For example, if you get married, if you buy a pet, if you add a room in your house. These data influence your contract. For example, if your dog assaults someone and the insurance was unaware of the existence of him, it will not protect him against claims.
Call Univista Insurance and get the cheapest home insurance on the market. Five mistakes to avoid when buying home insurance.
