With winter in full swing, and record-breaking storms on the horizon, it’s important to know how well your home is covered.
The tragedy happens when you think that you’re covered, but loopholes in your policy leave you vulnerable. Make sure you know your policy and have the exact coverage that you want, and, more importantly, need.
With a little bit of research and being proactive, you can make sure you have a great policy in place. Here are some common mistakes to avoid.
- Don’t Underinsure
Many homeowners only purchase enough insurance to cover their mortgage, which can be only up to 80-90% the value of their home. Furthermore, even if the full value of your home is covered, it may cost more to rebuild your house.
Here’s what to do. Hire a professional to estimate the value of what it would cost to rebuild your house. Many insurers provide this service for free or a fee of about $300. If you truly value your home, this fee may feel very small compared to the knowledge you’ll be getting in return.
- Don’t Assume You Have Flood Insurance
Make sure to always ask your agent if you are covered for a flood. If you live near a body of water, it may be part of your mortgage agreement to have flood insurance, but if not, then double check. Look at floodsmart.gov to see how big the risk is in your area and make sure you are adequately covered.
- Don’t Think You Have One Deductible Across the Board
You might think that your maximum out of pocket payment will be $500 or $1000, but make sure that there aren’t special circumstances that make you have to cover 10-15% of the cost.
With these helpful tips, you’ll be better aware of how strong your policy actually is.