2017 saw many United States residents seeing the aftermath of hurricanes, wildfires and mudslides which left many homeowners struggling to get back on their feet and recover from the damages, they are beginning to take a closer look at their homeowners insurance plans and work toward getting better coverage.
Yet as quickly as people sometimes act in these situations, sometimes their decisions actually end up hurting them and their plans when the right research is not done. Here are five common homeowner mistakes that can cost you.
- Assuming You Have Flood Coverage – This can be especially true for those living in hurricane prone areas. Do not assume that your homeowners insurance plan covers you in the event of a flood. Flood damage is not covered by standard homeowners insurance plans. Flood insurance is available through federal programs which homeowners can gain access to by request. Prices vary for these plans but they are very important if you live in any flood-prone areas.
- Expecting Coverage For Mold And Sewage Backup – Mold and sewage back up can generally follow one another and be a pain to clean up. Most standard policies do not cover you in the event of mold and sewage backup. Mold is a common in older homes and when water or moisture buildup occurs. While you might get some coverage and help, there are limits on claims for these instances.
- Undervalue You Personal Possessions – In the event of a disaster, you will want to make sure you get replacements or reimbursed for any belongings that were destroyed. A common mistake is that homeowners do not fully have a list of everything of value and that can come back to hurt you at the time of a disaster. Conduct a personal inventory list of everything you own or that has value.
- Under-Insuring Your Home – Many homeowners only insure the amount of their home mortgage but that is only 80 to 90 percent of your homes value. So that other 10 or 20 percent would not be covered in the event of a disaster and needing repairs. When you’re dealing with $300,000, that 10 or 20 percent certainly adds up and will be hard to cover out of your own pocket.
Owning a home is often one of the biggest investments people will make. Take the time to protect it and your belongings so if you ever find yourself dealing with a disaster, you will be covered. Having the best homeowners insurance can do just that, helping you every step of the way. And luckily, finding cheap home insurance quotes today is simple, fast and readily available.