About 93% of American homeowners have at least basic homeowners insurance. Of course, choosing the right homeowners insurance policy for your specific needs is almost always a challenge. But taking the time to explore your options is critical to developing the peace of mind that comes with knowing your home is truly covered in the event of an emergency. With that in mind, here are just a few dangerous home insurance mistakes that should be avoided at all costs.
Not knowing about exclusions.
Many people underestimate the risks that come with not reading the fine print thoroughly. The fact is, all homeowners insurance policies have some exclusions, and it’s your job to make sure the most likely causes of claims are covered. For example, if you live in an area that’s prone to tropical storms, you’ll want to make sure your policy covers hurricane damage. The same goes for other types of disasters, like earthquakes, and floods. Be aware of exclusions and consider them carefully.
Not communicating efficiently.
Anyone who holds a Farmers Union Insurance homeowner insurance policy must remember the importance of keeping in touch with their agent. You’re expected to alert your agentto even small changes in your home as soon as you can, as even a short delay can have negative implications:
“Think of your insurance agent as your new best friend. Almost. He or she — not your workmate, neighbor or Uncle Frank — should be the first to know if you fence your backyard, turn your basement into a game den, or transform your spare room into an office. Insurance companies can use seemingly insignificant reasons to refuse to pay out, so make sure you notify your insurer of any big projects, and always request — and keep — your insurers acknowledgment letter,” writes Tamara Hinson on RD.
Getting less coverage than you need in order to cut costs.
Finally, don’t ever try to cut costs by choosing a plan with less coverage than you actually need. This is just a disaster waiting to happen. Take the time to talk to your insurance specialist to discuss the different types of insurance and find the plan that works for both your home’s safety as well as your wallet.
Avoiding these mistakes is the key to choosing a policy you’ll be happy with. For more information about Farmers homeowner insurance, contact Farmers Union Insurance.
