The weather and nature is unpredictable. Therefore, you want to ensure your home is properly covered in the event a major weather storm comes blowing in and damages your home. Here are four mistakes that you want to ensure that you do not fall a victim to:
1. Not Having Enough Coverage for Your Home.
Nearly two-thirds of homes in the United States do not have enough coverage. There are two primary reasons for this. The first is that the homeowner only takes out enough coverage for their mortgage. The second is that the homeowner uses the current value of their home rather than the replacement cost of their home.
To ensure that you obtain adequate coverage, you will want to speak to a professional contractor for an estimate of how much it would cost to replace your home in the event of a disaster. You will then take this number to your insurance agent and obtain coverage for that amount, or a little more just in case.
2. Assuming That There Is One Deductible for Everything.
It is important that homeowners realize that the deductible they choose at the time of obtaining coverage is not always the amount of money that has to be paid for a claim to be paid.
In some cases, such as with hurricane damage, a percentage is required to be paid as the deductible. The actual percentage will vary from one weather event to the next.
This is something that you want to be aware of when you first get your policy. There are policies out there that have flat-rate deductibles, so you may want to see if that is something you can obtain. It will be more expensive, but it can be beneficial if your home sustains damage more frequently than the average home.
3. Not Inquiring About Sewage Backup Coverage.
It isn't uncommon for sewage backup to not be covered under your standard homeowners insurance. However, it is additional coverage that you can have added to your monthly homeowners insurance premium. Unfortunately, you usually have to request this, as it isn't something that is simply added to your policy or mentioned to you out of the kindness of the insurance agent's heart.
4. Assuming You Automatically Have Flood Coverage.
Flood coverage is similar to sewage backup coverage. It isn't something that is typically mentioned or automatically a part of your homeowners policy. If you live in a common area where floods are typical, then the insurance agent may actually mention it to you. However, you shouldn't hold your breath. It's better to be prepared to request flood insurance.
The most important thing for homeowners to realize is that there is no stupid question when it comes to coverage for their home. The insurance agent may think otherwise, but it is in your best interest to ask any and all questions that you have to ensure that you obtain the type and amount of coverage that you need to keep your home safe, secure and covered in the event of a disaster.
