Insurance Services of Washington Blog
Homeowners understand the necessity of having a good home insurance policy. But with the dizzying number of insurance options available and the insane amount of information to know, many homeowners end up being less informed about their coverage.
The lack of information could cause one to make an expensive mistake. Here are three costly errors to watch out for:
1. Under Insuring Your Home
Insurance specialists agree that under insuring their house is the biggest mistake homeowners can make. Sadly, it's a mistake that a lot of people make. Most homeowners tend to get a policy that just covers their mortgage amount. However, the mortgage is just about 80% of the house's value. Others just opt for a policy that's equal to their home's current value. But this figure might be less than the cost of rebuilding the house. Most of the time, the cost of labor and the price of materials are not even factored in.
2. Deciding on an Insurance Policy Based on Price
We all want to save wherever we can, but your insurance policy is one place you don't want to skimp. Bear in mind that low-priced policies might be tempting now, but there's a reason why they're so cheap. Most of the time, it's because they don't offer a lot of coverage. In the end, not being protected under numerous circumstances just isn't worth the savings you might have gotten.
Don't be afraid to compare prices between different insurers to find the right policy that fits your budget and meets your needs. You should also make sure you work with a licensed insurer from your state.
3. Thinking That Your Policy Covers Floods
Coverage against floods is not part of the conventional homeowner's policy. However, if your home is near a body of water or you're living in a city like Miami, you should definitely make sure you have this insurance.
Luckily, flood insurance isn't difficult to apply for. It's part of a federal program that accepts anyone that wants coverage. Policy prices vary; homeowners can pay anywhere from $55 to $8,000 annually for contents-only coverage in low-risk areas. Meanwhile, prices in high-risk areas can cost as high as $250,000.
Working with a reputable insurance agency will go a long way in preventing you from making expensive mistakes with regards to your home insurance. So find an agent with your best interest in mind. He or she will answer all the questions you have and will work hard to find the right policy for your home.
At Insurance Services of Washington Inc., we work hard in making sure that our clients are well-protected with policies that they can afford. To learn more about how we can help you, please contact our agency at (425) 868-1123 or Click Here to request a free quote.