Home insurance is something that more than 90% of homeowners in the United States carry. It’s typically required by mortgage companies of their loan clients and, even for individuals who own their homes free and clear, insurance is an obvious answer to protecting themselves from massive financial losses regarding damage or destruction of their residences.
Since so many people are buyers of home insurance, the field is highly competitive, with numerous insurers vying for your business. Your job is to find the best available coverage at the most reasonable cost from a highly rated insurer with a great track record for handling claims and treating clients well. Having a trusted broker find and compare policies and companies for your consideration is a quick, easy way to do this.
Seven Mistakes to Avoid
Following is a list of mistakes that too many people make when buying their Greensboro homeowners insurance but that you should take care to avoid:
- Your Greensboro homeowners insurance policy shouldn’t be based on today’s real estate prices but on the cost to rebuild your home and replace your possessions in the event that the home is totally destroyed by something like a house fire or a tornado. For the purposes of insurance, your home’s value should not include the land on which it sits, since the land won’t typically be affected by a qualified claim.
- Don’t make the mistake of just buying enough home insurance to pay off your mortgage. Make sure you have enough to completely replace your home to the condition it was before the loss. Also, have an accurate idea of the value of your personal possessions so these can also be adequately covered.
- While cost is important, don’t select an insurer on price alone. Also, avoid blindly going with the insurer your mortgagor recommends.
- Avoid choosing an insurer without first checking its financial health with an independent rating agency such as A.M. Best.
- Avoid setting too low of a deductible on your policy. Selecting a higher deductible can save significantly on your monthly premium, which can add up in savings if you’re not filing claims.
- Avoid not carrying flood insurance, which is not included in your standard homeowners policy, just because you live in a low-risk flood area. 25% of all flood losses take place in low-risk areas.
- Don’t forget to ask about various premium discounts available to you. There may be several.