Top 3 Mistakes in Buying Homeowners Insurance

For many homeowners, homeowners insurance in Queens, NY is something they buy because their mortgage lender says they must. It’s not a thought-about coverage, yet it offers such valuable coverage. We all make mistakes in life. We’re only human. However, when we’re taking out insurance coverage, it’s important that we are mindful not to make common mistakes. Unfortunately, that’s easier said than done. In order to help you secure the right coverage at the right price seamlessly, take a look at these common homeowners insurance mistakes.


Avoid These Mistakes When Taking Out Home Insurance


  1. Considering only cost, not value

Many homeowners are, understandably, concerned about the cost of their premium. However, another top priority concern should be to consider the amount of coverage you are buying. If you are shopping for home insurance, don’t just pay attention to the bottom line. Instead, look at the coverage and the value you are getting. In most cases, the cheapest policies do not offer the best value of cover. Instead of being concerned about the monthly premium, first determine what coverage your home needs, and then work with an insurance agent to make these payments more affordable.


  1. Underinsuring your home

Experts say that one of the most common homeowners insurance mistakes is the failure to have enough insurance on the property if it is destroyed. That means that if a disaster does occur, the homeowner could be on the hook for the remaining expenses once the policy has been exhausted. In many cases, this could be tens of thousands of dollars that the homeowner needs to pay out of pocket. It’s a common mistake that homeowners insure an amount equal to the current value of their homes. It’s recommended that homeowners calculate how much it will cost to rebuild their homes and then insure to that amount.


  1. Undervaluing your personal property

It’s common for homeowners to undervalue their possessions and, therefore, purchase insufficient coverage. It’s recommended that homeowners conduct a personal inventory of possessions and value items based on replacement value. Most homeowner policies have limitations on jewelry and collectibles, which may require the homeowner to purchase additional coverage. If you have items of high-value, talk to your insurer about how to properly safeguard these possessions.


How to Find the Right Home Insurance


Now you know the common mistakes to avoid when purchasing home insurance, how do you go about finding suitable coverage without making errors? There are a few key points to remember. Firstly, you should understand how much coverage you need. A great way to do this is to conduct a home inventory, totaling the value of your possessions. This will give you a better insight into how much personal property coverage you need. Keep in mind that you will be insuring the cost of rebuilding your home from scratch – not the price you paid for it.


Once you have a better idea of how much coverage you need, it’s time to reach out to three or four insurance agents and ask for quotes. When comparing the quotes, don’t just look at the bottom line. Compare the coverage, deductibles, and value. In many cases, the insurer will be able to work with you to tailor coverage to your needs and budget.


Once you have a homeowners insurance policy in hand, it’s important to regularly review it. While most insurers suggest reviewing your policy annually, it should be whenever your needs change, such as if you sell items, purchase high-value belongings, change the property in any way, or your lifestyle changes.


At Northeastern Group Ltd., we work with homeowners in New York, New Jersey, Connecticut, Pennsylvania, Georgia, and Florida to find the right coverage that suits their needs and property. Contact us today to get started.

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