4 Common Mistakes Made By Homeowners

From unexpected accidents to major expenses, it’s important to read and understand the fine print of your homeowners’ insurance policy before disaster strikes.

As a homeowner, or soon-to-be homeowner, here are 4 mistakes to avoid:

1. First, don’t underinsure your home. The single biggest mistake made by homeowners is neglecting to purchase enough coverage for a rebuild of their house if it were to be destroyed. In fact, it’s estimated that two-thirds of homes are underinsured! Most homeowners either buy insurance at their home’s current value or only buy enough to cover their mortgage, but if your house needs to be rebuilt, these approaches just won’t cut it.
2. Second, make sure you have flood insurance. Don’t just assume that your policy protects your home from flood disasters. In fact, most standard homeowner’s policies don’t include flood insurance.
3. Third, don’t assume that you have one, flat deductible. Sure, when you bought your policy, you agreed to an out-of-pocket cost, but in the event of a natural disaster, you could be required to pay a deductible that is up to 10-15% of your current coverage. Know if your deductible could be potentially high so that you are better prepared.
4. And lastly, don’t assume that you have coverage for mold or sewage backup. These aren’t included in most homeowner’s policies but can be easily included as additional coverage.

Have a question about an existing plan or feeling ready to get started? Contact a Latorre Insurance agent today.