Five Mistakes To Avoid With Insurance
Insuring a home for its real estate value vs. the cost of rebuilding
Insurance is designed to cover the cost of REBUILDING, not the sales price of the home. It is very important to make sure your home is insured with enough coverage to completely rebuild your home – no matter what the real estate market is doing.
Selecting an insurance company by price alone
It is very important to choose a company with competitive prices WITHOUT sacrificing important coverages. Cheaper isn’t always better! With your home being one of your biggest investments, you need to make sure it is covered accurately.
Neglecting to buy renters insurance
A Renters insurance policy covers your possessions and additional living expenses. Equally important, it also provides liability protection in the event you damage the home and have to repair it OR if you’re the landlord, this policy may repair your home without you having that expense. *Always Check your policy for clarification*
Not having the correct policy when remodeling your home
Homes and other buildings that are under construction need this policy. It covers partially completed buildings and construction material against a loss. Your homeowners policy will not cover this so its very important to get the right policy in place before starting those big remodeling projects
Dropping flood insurance
Damage from flooding IS NOT covered under a standard homeowners and/or renters insurance policy. This is not covered under your water damage coverages! Keep in mind that 25% of all flood losses occur in low-risk areas so even though flood insurance can be costly, so can the damage it causes.