Home insurance is essential. However, each year thousands of consumers realise that they’ve purchased inadequate policies, by which time, it’s too late. This can lead to hugely unanticipated expenses that people often can’t afford.
We have listed 4 common mistakes when it comes to your home insurance policy to help you understand what to look out for.
One of the biggest mistakes people make is not having enough insurance to cover the cost of rebuilding your house if it’s destroyed.
Sometimes people insure their property for the amount of their mortgage, but your mortgage may only cover 70 to 90 percent of the value of your house. This normally depends on the original down payment that was made.
Another scenario is where people insure their house for the current value of their property. However, this figure may be significantly lower than the actual cost of rebuilding your home when you factor in costs such as labour. It is also extremely important to purchase a policy which covers your valuables, including jewellery, art, antiques etc. It’s better for you to know what’s covered from the start to ensure that there’s no surprises if you ever need to file a claim in the future.
A lot of insurance companies will exclude flood cover if you are located near a body of water that is prone to flooding. If you discover that you’re not insured for a flood, landslide, fire, or alien attack, after the unforeseen event has occurred, then there’s nothing you can do. Talk to your insurer about any exclusions that your policy may have. Neglecting to speak to your insurance agent could be the costliest mistake you’ll ever make.
If you decide to renovate your home, you need to update your insurer. Things like adding on a conservatory can affect your policy. Therefore, you must always make sure to notify your home insurance provider about any big home improvement projects.
Sometimes additional discounts may be available to you. Insurers often provide a discount for monitored security precautions such as smoke alarms and burglar alarms. Always ask if you have all of your discounts included.
Please note: these discounts will only be applicable if you have the correct security precautions installed.
Our home insurance team source quotes from over 15 different insurers to find the most competitive policy that is suitable to your needs.
Why not request a callback and find out if we can help you save money on your home insurance policy. We are always happy to help!