As a homeowner, you want to do everything necessary to protect your home and the possessions within it. For many people, this means securing adequate homeowners insurance coverage.
Many people make the mistake of shopping for homeowners insurance based on price alone. While price is undoubtedly an important consideration when finding an insurer, whether you are looking for a home in Dubai real estate or your local living, other factors should be considered, such as service and quality of protection. Here are five mistakes you need to avoid if you want quality homeowners insurance coverage:
1) Not Doing Your Homework
When buying anything in life, we usually take the time to research what we’re buying before buying it. Purchasing a new laptop or cell phone can be a very tedious and time-consuming task to all of the options available, and it can be easy to settle for the first one you find.
The same is true with purchasing a homeowners insurance policy. Just as we would take a little time to research laptops and cell phones, we should also take the time to learn about the different types of coverage available and the prices associated with those policies. If you have other houses or properties that should have their policy, make sure you understand how they are covered under your primary homeowner’s policy.
By shopping around for quotes on multiple home insurance policies, it will be much easier for you to identify which insurer offers the best value based on price alone as well as the quality of coverage.
2) Failing To Shop Around
Like most significant purchases in life, it’s always wise to shop around for homeowners insurance quotes. Not only will you get a better idea of the prices associated with various plans, but you will also get an idea of what kind of service each insurer offers.
If you can get homeowners insurance quotes online, this should be the first to start your search. Compare at least three or four different insurers before making any decisions. It’s never recommended that you purchase insurance from an insurance agent; instead, it’s best to leave this task up to the professionals who make their living by knowing how much coverage should cost and which insurers offer it.
3) Failing To Obtain Additional Coverage
While most home policies cover fire, theft, and damage due to other typical incidents such as hurricanes or tornadoes, you may consider purchasing additional coverage if you have a swimming pool, trampoline, or expensive landscaping on your property.
Failing to obtain adequate coverage can leave you with a very unhappy surprise if an accident occurs. For example, if a fire was caused by a child playing with fireworks in your backyard and it destroys the entire house and all of its contents, most standard home insurance plans would only pay for the rebuilding costs minus the cost of the land (leaving you responsible for any difference). If you had purchased additional coverage such as loss of use or landscaping damage, this would be covered instead.
4) Unclear Communication
Make sure that when shopping for homeowners insurance quotes, everything is clearly stated upfront. Don’t let yourself get caught up chasing down quotes you think are better only to find out later that the policy doesn’t cover something you thought was included or vice versa.
Whether its coverage for your home, additional items such as jewelry or expensive electronics not listed in the policy, lost wages if your home is damaged and you can’t work while it’s being repaired or any other discrepancies; make sure they are all cleared up before signing on the dotted line.
5) Not Having A Plan B
While most people purchase homeowners insurance to protect their homes and possessions against typical perils, there are instances when even the best-laid plans will fail. Suppose you had a fire or flooding due to unforeseen events (i.e., faulty electrical wiring). Would you have enough time to make alternative living arrangements as well as notify your insurance company?
Having a backup plan can mean the difference between protecting what you have and losing it all. For example, if you had purchased an inexpensive renters insurance policy that covers the cost of temporary shelter if there is a fire or other disaster at your primary residence, this would give you a much-needed head start when making alternate arrangements.
Make sure you read the full policy before purchasing any home insurance. Don’t just rely on a quick quote or a sales pitch from an agent, insurer, or broker that’s trying to earn your business. By knowing what is covered and under which circumstances coverage will apply, it’ll be easier for you to find the lowest cost while at the same time having the quality of protection you desire.