Your home may very well be your most valuable asset. Therefore, it is vital that you have adequate home insurance coverage. Insufficient coverage could prove disastrous when making an insurance claim. The following mistakes should be avoided at all costs when obtaining home insurance coverage for your property:
Many homeowners are tempted to go with minimum home insurance coverage to save on premium costs. Minimum coverage, however, may not be enough to protect you against a major catastrophe. To fully protect your assets, your policy should offer sufficient coverage to replace personal goods and rebuild your home in the event of total loss.
Before buying a home insurance policy, make sure you fully understand your coverage. Review the policy with your agent before signing to ensure you’re getting the protection you want and need. Underestimating or overestimating your coverage will leave you unprepared to face the consequences when making a claim.
Miscalculating Your Deductible
It’s important to consider your financial situation when calculating your home insurance deductible. The lower your deductible, the higher premium you’ll pay for home insurance over the long haul. Setting a high deductible lowers your home insurance premiums. However, you pay more out of pocket to cover the cost of a loss. If you have the financial resources to assume this responsibility, you can select a higher deductible and save on insurance costs.
Getting Basic Coverage
A basic (standard) home insurance policy will usually protect you against major storm damage, lightning, hail, fire, theft, and vandalism. It does not usually cover earthquakes, hurricanes or floods. If you’re at higher risk of these disasters where you live, you should add these perils to your coverage.
Flood insurance is particularly important as flood loss can easily occur even if you’re not in a flood zone. You should also consider a rider for mold or mildew damage if this coverage isn’t offered in your policy.
Skimping on Liability Coverage
Liability coverage protects your assets if a visitor is injured or sustains property damage while on your property. Standard home insurance policies offer minimal protection in this area. This puts you at risk of covering the rest out of pocket in the event of an accident. By raising these limits to at least $300,000, you can protect your assets.
Not Obtaining Worker’s Comp
If you have permanent employees working in your home, such as a maid, butler, cook, etc., you’d do well to obtain worker’s comp commercial insurance coverage. Workers comp pays for any injuries employees sustain on the job. Without this coverage, you may be held liable for these expenses on your own.
If your employees run errands as part of their job, you may need commercial auto insurance to protect them against accidents on the road. By consulting with your agent, you can get a better idea of the coverage you need to protect yourself and your domestic workers.
Bundling home, commercial or car insurance policies could make you eligible for a discount on your insurance premium. Bundling insurance policies is a great way to save without compromising your overall coverage.
At Absolute Choice Insurance, we are committed to providing Floridians with quality home, commercial and auto insurance. For more information, contact us today.