How to Avoid Common Homeowners Insurance Pitfalls

Getting the proper coverage for homeowners insurance should be a simple process, but all too commonly mistakes are made. These mistakes can end up costing you thousands, even potentially millions in the event of lawsuits.

You Need to Shop Around

Many times people will talk to one agent from one company and sign for the first auto insurance or homeowners insurance policy they come across. There are hundreds of insurance companies in the US and over 450,000 insurance agents working with them. Use this to your advantage to secure not on the best rate, but also the best coverages.

Don’t get stuck on the price! It’s all too common for someone to settle on a less comprehensive policy to save money, when an even better policy was available at a competing company for the same price. Shopping around for auto insurance and homeowners insurance will not only save you money, but it can allow you to be able to afford critical extra coverages that could end us saving you a fortune during the claims process.

Don’t Lie: You Need to Be Honest About Your History

Lying to your auto insurance or homeowners insurance company about your history is a terrible idea for many reasons. No matter how bad your driving history may be or how many homeowners insurance claims you may have filed, do not omit critical information from your application in the hopes that you can dodge paying a higher premium.

For example if you have a of speeding tickets and moving violations and you omit that from your auto insurance application, it’s very likely that you will receive an even higher rate when they find out later about violations (and trust me, they always do). The more likely scenario is they will deny you coverage all together.

As for homeowners insurance, lying about not having parties or past claims you may have filed for personal injury but didn’t list is guaranteed way to either be denied coverage or receive a significantly higher rate.

Get To Know Your Insurance Agent Better

Your auto insurance and homeowners insurance policies are two of the most important financial decisions you will encounter. Don’t enter into such a major financial decision without knowing a good deal about the person you are working with. Don’t be afraid to ask difficult questions and really make the agent show how experienced and knowledgeable they actually are. If you don’t feel comfortable with the agent you are talking to, simply try another one.

As I mentioned above there are 450,000 insurance agents in the US so there is certainly one you can find locally who you would enjoy working with. Getting a good agent will insure that your claims are processed faster, that your claims are denied less often, and that you have the proper coverage with your auto insurance and homeowners insurance.

Read the Fine Print

An insurance policy is a contract between you and the insurance company that clearly states exactly what is covered, what rights you have, and what legal grounds the company has to deny your claims. You need to understand these thoroughly; otherwise you may find yourself completely uncovered after disaster and facing a pile of bills you may not be able to afford.

Find out what it covers and more importantly find out exactly what your policy does not cover. Once you understand that you can make financial plans to better prepare yourself in the event of an uncovered claim or denied claim.

Overall, be smart with the choices you make with your next insurance policy. Ask a lot of questions, read the fine print, know your coverages, and make sure you are comfortable with your agent and you should never have a problem with your auto insurance or homeowners insurance.

Homeowners Insurance Common Mistakes
Many consumers are aware that they need to invest in proper coverage, whether its homeowners insurance or auto insurance or some other policy.