Mistakes To Avoid When Purchasing A Homeowner's Insurance Policy
A homeowner's insurance policy is an invaluable piece of protection. However, this is only the case if you have the right policy. Securing a policy that will be best suited to protect your home has a lot to do with avoiding mistakes during the purchasing process. Here are just some of the mistakes you want to avoid when shopping for a new homeowner's policy.
Insufficient Personal Liability Coverage
Personal liability coverage offers protection for property damage or bodily injury sustained by another person, where you or a member of your household is deemed to be the responsible party. Many homeowners get this coverage, but not everyone gets enough. Insufficient coverage will leave you to pay these expenses on your own. Homeowners should perform a thorough assessment of how much they can afford to spend out of pocket before determining how little personal liability coverage is necessary.
Leading With Price
For any person, the cost of an insurance policy premium is very important. Just don't lead with this factor. Choosing a policy solely based on its cost can quickly leave you with a policy that won't give you the coverage you need. The claims handling process, such as how quickly claims are paid, and having a variety comprehensive coverage options are additional factors that should play a leading role in selecting a policy.
Make sure you aren't overlooking any potential discounts. While most people deal with the more obvious discounts, such as multi-policy savings, there are other discounts that might be available to you. For example, some insurance providers offer discounts to policy holders whose homes have been constructed from safer building materials, such as fire-resistant siding or roofing. Having a sprinkler system or deadbolt locks on the doors might also introduce more discounts.
Underestimating The Value of Belongings
Don't underestimate the value of your household belongings. Remember, you will only be reimbursed based on the value of your policy. If you underestimate, you're only hurting yourself. You also want to make sure you research the insurance company's reimbursement schedule. For example, some providers pay based on the cash value of an item at the time of the claim. Others don't factor in depreciation and pay the original cost. Knowing this information can minimize stress when filing a claim.
You can avoid these mistakes by working with an agent. An agent will be able to assess your needs, from financial restraints to the value of your household belongings, to help ensure you have the right level of coverage. Contact a local company, such as Colling Insurance Services, Inc, to talk with an agent today.