Prestizia Insurance Blog
All around the world, the weather is changing and people suffer from heavy storms and snows, earthquakes, flash floods and other weather conditions that can deal a lot of damage to your homes. This can cause homeowners to shell out a huge amount of money if it’s not part of their homeowner’s insurance policy.
To prevent this from happening, it is your responsibility as a homeowner to read and review your policy fine print.
4 Mistakes That You Need to Know
Here are some of the most common mistakes made by homeowners when reviewing their insurance policy.
1. Not Assuming Rebuilding Costs
Under Insuring your home and not assuming rebuilding costs once your house gets destroyed is the most common mistake that homeowners make. In the US alone, at least 60 percent of houses are underinsured according to experts.
Let’s face it, most homeowners get insurance that is enough to cover their mortgage. They do not realize, however, that this type of insurance does not cover your house’s whole value nor does it take into consideration it’s value as it appreciates. More often than not, insuring your house’s current value does not equate to the cost that you need for rebuilding it.
Get a homeowner’s insurance that covers damages caused by future events such as house construction. It’s also wise to include the inflation rates for materials and labor that your house reconstruction will require. Most insurance companies offer different types of home insurance including the extended replacement coverage which covers home reconstruction costs.
2. No Flood Insurance
Most homeowners assume that their homes are protected from floods that cause damage to their property. However, it’s good to know that this is not included as a part of your policy and you are not covered unless you ask for it. With heavy storms plaguing the globe, it’s best to make sure that you get flood insurance even if you don’t live in coastal areas.
Talk to your insurance agent about getting flood insurance along with your current home policy. Flood insurance is quite easy to get and most companies offer it. The rates will depend on the risk of your area being flooded.
3. Not Having a Flat-Rate Deductible
If your home gets damaged due to natural disasters, your insurance policies deductible becomes a portion of your coverage value. Your deductible can reach a maximum of 15 percent depending on the occurrence. This means that you might be surprised to have a huge deductible when you file your claim. This mistake often leads to spending more than you expected for the repair of your home.
Call your insurance company and ask about their deductibles. If they have different deductibles, tell them that you want your policy to have a flat-rate one.
4. No Mold and Sewer Back-Up Coverage
Home Insurance policies do not usually include these kinds of coverage or they might apply claim limitations to them. Check the fine print and review your policy to make sure that you have both of these covered.
Talk to your agent to have these added to your existing home insurance policy. It may seem unnecessary, but you will find that these two are worth having especially during heavy rains. If you live in an area that can be very humid during the summer, you will find the mold coverage worth the money.
Check your policies today and save yourself a lifetime of regret. At Prestizia Insurance, we take pride in making sure our clients are well protected at prices they can afford. To learn more about how we can help you please contact our agency at (855) 436-6353 or Click Here to request a free quote.