Common Mistakes First-time Homeowners Make With Insurance

Purchasing your first home can be an incredible milestone in your life. However, your job as a responsible homeowner is not done simply after closing on your acquisition. You’ll need suitable insurance to protect your investment, and understanding possible pitfalls in this venture could be key in ensuring appropriate coverage.

4 Mistakes to Avoid When Purchasing Home Insurance

Home insurance policies can be nuanced and complicated, often including various exclusions and limitations while offering possible endorsements and enhancements. To weigh the cost-effectiveness of these variables, it’s important to have extensive knowledge of potential errors homeowners can make when considering insurance coverage. Consider the following possible mistakes that first-time homeowners may make:

1. Falling short of the 80% rule—This insurance guideline requires your policy to include coverage limits that exceed at least 80% of your home’s total replacement cost. Failing to adhere to this rule typically means you’ll receive lesser payouts even for covered losses within your policy’s capabilities.

2. Failing to cover valuable possessions—Your home insurance policy may cover personal belongings, but particularly valuable items, such as jewelry and fine art, may require additional coverage. Consider exploring scheduled property coverage.

3. Leaving coverage gaps—While standard homeowners insurance may cover many common incidents, including fires, burglaries and vandalism, exclusions must be accounted for. For example, floods are usually excluded from standard policies, making additional coverage necessary.

4. Taking the first offer—Even if you think you’ve found the right policy with robust and versatile coverage, you should still explore other options. Prospecting coverage from multiple carriers can help ensure you have suitable insurance while enjoying an ideal rate.

How to Get Homeowners Insurance Near You

Contact Hunkins & Eaton Insurance Agency today to learn more about coverage options in the Littleton, New Hampshire, area.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.