Homeowner's Insurance: Mistakes To Avoid
When you've secured a mortgage for a house that you plan to live in, one of the conditions of that mortgage is likely to be that you purchase a solid insurance policy for the house. If you're not really knowledgeable about home insurance, you'll need to take care to avoid the following errors; they could cause inadequate or excessive coverage that affects you financially in a number of ways.
Having Land Coverage
Some home insurance policies are written in a way that gives you some financial coverage of property soil and the land where the house sits. Unless you know there are underground fuel tanks or another active issue with the land, you might be able to exclude this coverage. That's because, even if something serious should happen to the house, in many cases, the land is fine and another structure can be created. Therefore, consider what the price of any policy would be without land coverage and think twice about including it.
Not Seeking Out a Deal
Like many, you may be concerned about the money you'll have to find in your budget each month to cover home insurance bills. However, you might not even be thinking about the fact that you may be able to get a better deal by looking for possible discounts. For example, you may see savings if you choose to bundle the policy with one you've already got from a particular insurer; you may be able to save a few dollars by updating various systems in the house as well.
When you're able to cut costs, you may be in a better position to expand your coverage when needed.
Ignoring Earthquake or Flood Needs
It could be surprising to find out after a serious weather crisis that your house is not covered for an earthquake or flood, particularly if there is significant damage. That's why it's essential to find out beforehand if the home policy will include provisions for these events. Typically you'll have to purchase flood or earthquake coverage through their own separate policies.
Not Knowing Time Limits
The last thing you'll need to do is to know which time limits are in place for any policy you're about to take. Some companies only provide a window of a few weeks to report issues such as mold or wind damage. Look for policies that leave generous time for reporting any issues.
Being sure that you won't succumb to the financial trouble caused by these mistakes is important when you need a policy for your house. Working with a local insurance agent to work out the particulars is a wise idea; you can be a lot more confident that you've got adequate home insurance going forward.
Visit websites like http://www.martininsurancecompany.com to learn more.
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