The past few years we have seen one catastrophe after another destroy homes across the United States. Just north of California, devastating fires wiped out whole neighborhoods. South of us, hurricanes battered the coast. Tornadoes whipped across the Plains, leveling everything in their path. Closer to home, we, too, have seen wildfires destroy homes and businesses and then there is the ever-present threat of earthquakes. So, you will probably agree that Homeowners Insurance plays an important role in securing an unknown future.
However, many people (and businesses) don’t understand insurance and will look for the cheapest insurance available. Avoid that mistake along with others and get the coverage you need to protect you and your family.
Mistake #1 – Underinsuring Your House
Insurance experts say one of the biggest mistakes homeowners make is not having enough insurance to cover the cost of rebuilding their home. In fact, some estimates show that nearly two-thirds of U.S. homes are underinsured.
Why? For one thing, many homeowners think they only need enough insurance to cover the amount of their mortgage. It’s true that banks only require that coverage for the amount owed to them, but at best you will pay off your loan. You will NOT have enough for a new home. Why? Because if you have any equity at all, then the mortgage amount is not the full value of the home. Plus, the cost of building supplies continues to rise and so replacement costs more than what it did to build the originally.
What Should You Do?
Call Post Insurance and meet with an agent. They have cost estimation tools that can calculate what it would take to rebuild your home in today’s market.
Mistake #2 – Thinking You Only Have One Deductible
Unfortunately, you need to read the fine print on your Homeowners Insurance policy. You may believe that your deductible is a set amount, such as $500 or $1000 depending on what you were told when you purchased the policy. However, that may not actually be the case
In the case of certain types of occurrences, such as hurricanes, floods, or earthquakes, your deductible often becomes a percentage of your actual coverage. Even worse, you could find that in certain circumstances, you aren’t covered at all.
So, if your house is insured for $300,000, but you sustain wind damage during a tropical storm, you could be socked with as much as a $15,000 deductible when you file your claim.
What should you do?
Ask your Post Insurance agent about the different deductibles and also about supplemental insurance.
Mistake #3 – Not Realizing Your Homeowners Insurance Covers That
It’s interesting to note that many homeowners have coverage and don’t even realize it. For instance, if a woman loses her wedding ring at a party, it’s probably covered under her Homeowners Insurance policy. If your boat is sitting in your driveway and gets damaged, you might be able to collect damage money from both your Homeowners Insurance and your Boat Insurance.
Conversely, there are other situations where homeowners assume they have coverage when they don’t. Typically, a regular policy does not cover flooding, mold, or sewage backup. However, supplemental insurance is available for all those situations.
What should you do?
Go over your existing coverage with a Post Insurance agent and assess your risks to see if you need supplemental coverage. Don’t hesitate to call and ask whether or not your policy covers a damage or loss.
Post Insurance has served the needs of homeowners in California for over 60 years. We provide all types of personal insurance including Homeowners Insurance at the most competitive rates. Post Insurance is the largest insurance agency in the area, representing over 50 different insurance companies. Call today and find out more about Homeowners Insurance and how it can protect you from potentially catastrophic losses.