Here are six common homeowners insurance mistakes to avoid in Connecticut:
1. Not getting enough coverage
One of the biggest mistakes homeowners make is not getting enough coverage. This can lead to financial hardship if your home is damaged or destroyed. To ensure you have enough coverage, get a regular home appraisal and inventory your belongings.
2. Assuming natural disasters are covered
Not all homeowners insurance policies cover natural disasters, such as floods and earthquakes. If you live in an area prone to natural disasters, check your policy to make sure you have the right coverage. You may need to purchase additional coverage or a rider policy.
3. Assuming anything that can happen is covered
A standard homeowners insurance policy may not cover certain risks or hazards, such as sewage backups and mold. If you’re concerned about these risks, talk to your insurance agent about additional coverage options.
4. Setting your deductible too high (or too low)
Your deductible is the amount you pay out of pocket before your insurance kicks in. Setting your deductible too high can save you money on premiums, but it could also leave you with a hefty bill if you need to file a claim. Setting your deductible too low can increase your premiums, but it will also give you more financial protection.
5. Not having enough liability coverage
Liability coverage protects you financially if someone is injured on your property or if you’re sued for damages. Many homeowners opt for the minimum amount of liability coverage, but this may not be enough. Talk to your insurance agent about the right amount of liability coverage for you.
6. Not considering whole home replacement costs
The cost of rebuilding your home is different from its market value. Market value is the price you could sell your home for today, while replacement cost is the amount it would cost to rebuild your home from the ground up.
Ensure your homeowners’ insurance policy covers the replacement cost of your home. If it doesn’t, you may need to purchase additional coverage.
How to avoid homeowners insurance mistakes
The best way to avoid these and other homeowners insurance mistakes is to work with an insurance expert. An expert will guide you through assessing your home insurance needs and help you source the carriers and policies that offer the right coverage for your needs.
You should also review your homeowners’ insurance policy regularly to make sure it still accurately reflects and protects your home and belongings. As your life changes, your insurance needs will often change too.
Contact Saunders Insurance for a free custom homeowners insurance quote
Saunders Insurance is a team of experienced Connecticut insurance professionals who can help you find the right homeowners’ insurance coverage for your needs and budget. Contact us today for a free custom quote.
