When you select insurance for your home, you want to feel you’ve done everything you can to provide the right amount of coverage. While the best insurance companies for homeowners will be willing to work with you to make this process as simple as possible, here are some common mistakes you should avoid.

Insufficient Liability Insurance

Most people under insure for liability coverage. While $100,000 is usually the default coverage, this amount won’t be adequate in the event more than one person becomes injured on your property and sues. Increasing this amount is an easy fix and tends to be low in cost.

Overlooking Modifications and Add-Ons

When you build additions to your property, you’ll want to contact your agent to update your policy. These additions can include a new pool, a garage, a room, or the remodel of a bath or kitchen. Many homeowners forget to add coverage insuring other buildings already on their property, such as a barn. Additionally, supplemental insurance may be needed if you have a special collection you want covered, such as art, antiques, or expensive jewelry items. If you keep equipment you use for your business in your home, you’ll want to discuss special coverage for these items as well.

Neglecting to Bundle Your Policies

If you carry both a car and a home owner insurance policy, the current trend is to bundle these services. Bundling means carrying both policies with the same insurance company. This is a smart way to save a lot of money.

Not Fully Understanding Your Policy

Not all homeowners take the time to read their entire policy, and there may be many important sections that are difficult to understand. Here are some sections you may have missed.

  • Exclusions — Every policy will list exclusions, such as flood or earthquake damage. Know what yours are and add supplemental coverage if needed.
  • Wear and Tear — As your roof, pipes, and electrical wiring wear out over time, these items are not usually covered by your policy.
  • Replacement Value Versus Market Value — Be sure your policy covers the replacement cost or amount it would take to reconstruct your home, rather than the market value, which could be a lot less and would not fully cover the rebuild.
  • Neglecting to Read the Policy — Reading through a home owner insurance policy can be confusing because of the complex language used. Your insurance agent can help you understand anything that isn’t clear to you.

Disregarding the Deductible

Every policy is different, as is the value of each person’s home. Work with a good agent at one of the best insurance companies for homeowners to get the right size deductible that makes sense for you and your circumstances. This deductible will be the amount of money you must pay toward repairs and replacement before your insurance benefits go into effect. If you are looking for a Dallas insurance agency to insure your home, contact us at Steven Graves Insurance Agency for the best in affordable home insurance.

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