What Mistakes Could You Be Making With Your Homeowner's Insurance?

Posted on: 9 June 2017

Having the right amount of homeowner's insurance is important. Unfortunately, some people make mistakes when selecting their insurance that results in them not having enough coverage or overpaying for what they have. If you are searching for a new policy, here are some mistakes you should avoid committing.  

Forgetting Your Upgrades 

Upgrades to your home can add to its value. If you forget to update your homeowner's insurance, you could miss out on receiving the correct value to replace those items in the event that there is damage to your home. Reporting your upgrades is not just a way to protect your ability to recover compensation for damages that you incur, but it can protect you from lawsuits.  

Upgrades, such as the addition of a swimming pool or trampoline, increases the risk of injury for you, your family, and visitors to your home. If a visitor is injured and your homeowner's insurance does not provide the protection needed, you could be on the hook financially for the injuries.  

Underinsuring Your Property 

In an effort to save on the cost of homeowner's insurance, some homeowners opt for the least expensive policies available. Although this can help you save on your premiums now, it could hurt you in the long run.  

For instance, if your policy only provides enough coverage for your mortgage, you could be left in a bind if your home suffers damage that leaves it a total loss. The cost of rebuilding your home could far exceed the value of your policy, which could mean you would have to find a way to pay for part or all of the rebuilding costs. 

Skipping the Worker's Compensation Insurance 

One of the most forgotten parts of homeowner's insurance is worker's compensation. However, if you have domestic employees, you need the protection. Without it, you could face a lawsuit and have to pay out-of-pocket if one of your employees is hurt while on the job.  

Your basic homeowner's insurance policy does not provide the coverage needed. It will help to cover occasional workers, but part-time or full-time workers require additional coverage. The coverage that is needed depends on your state.  

A homeowners insurance agency, such as Northeast Insurance Agency, can help you identify other aspects of your homeowner's insurance that you might be overlooking. He or she can also help you avoid making mistakes and ensure you get the coverage that is needed to protect your home and family. 


Choosing The Right Auto Insurance

When you are involved in a car accident, the only thing that matters is protecting your family and dealing with the aftermath of the problem. Unfortunately, one of the things you have to cope with after an accident is repairing your car, which is why auto insurance is so crucial. A few years ago I had a cut-rate plan, which really caused problems when I was involved in an auto accident. It was really discouraging to see how much of a difference it made once I switched to a better company, and I will never go back to using a basic plan again. Check out this blog for great information on choosing auto insurance.


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