Choosing the right property insurance can be a breeze with the right guidance. There are a few common mistakes homeowners may make, so understanding what they are and how to avoid them can help you make confident decisions in your cover. After all, your home is your haven and protecting it should feel reassuring rather than confusing.
In this article, we will explore five mistakes to avoid when choosing property insurance. From overlooking critical details to focusing solely on cost, we’ll help you sidestep these errors and give tips to ensure you make the best choice for you and your property.
#1: Underestimating your coverage needs
One of the most frequent mistakes homeowners make when purchasing insurance is undervaluing their property and possessions. For example, if you underestimate the rebuild cost for your home or undervalue the cost of replacing all of your possessions, your insurer may not pay out your full claim, leaving you out of pocket.
How to avoid Mistake #1
To avoid underestimating your coverage needs, take the time to create a detailed inventory of your possessions. Also make sure to keep receipts from purchases and keep a note of their costs. This will then help you to find a home insurance policy that will cover the full cost of repairs and replacements.
#2: Not understanding policy language and exclusions
We get it – it’s confusing. While it would make everyone’s lives easier if insurers just said exactly what they meant, unfortunately this isn’t always the case. ‘Unlimited cover’, for example, might not actually mean unlimited and there may be limits within this. Exclusions can be another minefield. Although standard policies cover damage caused by flooding, there are certain exclusions.
How to avoid Mistake #2
Make sure to check your policies and see what damages they do and don’t cover before purchasing. Carefully read fine print and ask for advice and explanations on anything you don’t understand.
#3: Failing to shop around and compare offers
Homeowners insurance premiums can fluctuate from company to company, and can change every year or two. One insurance company may be expensive one year but affordable the next. Failing to shop around and compare offers means you can be missing out on big savings and more affordable policies.
How to avoid Mistake #3
When purchasing insurance for your home, be sure to shop around and compare rates. Get in contact with insurance brokers such as Nest GI to help compare quotes on your behalf, and to ensure that the policy you’re getting is affordable and has the right coverage for you.
#4: Purchasing home insurance based solely on price
We all love a good deal, but when it comes to property insurance, the cheapest option isn’t always the best. If an insurance premium seems too good to be true, it most likely is. Low premiums can often mean less comprehensive coverage or even higher excess fees. This could cost you more in the long run.
How to avoid Mistake #4
To avoid this mistake, look beyond the price tag. Compare what each policy offers, including factors like coverage limits, exclusions and excess charges. Ultimately make sure that the policy gives you everything you’re looking for at a price affordable for you – not just now, but in the future too.
#5: Not reviewing and updating your home insurance
Certain changes in your home may impact your coverage. For example, your insurer needs to know if you:
- Get married or ask someone to live with you
- Get a new pet
- Increase the number of bedrooms or bathrooms
- Remodel your kitchen
If you don’t update your home insurance, you might find that you’re underinsured in the event of a loss.
How to avoid Mistake #5
Don’t leave your insurance company in the dark! If you make any major upgrades or even small renovations that you think may affect your home insurance, always double check with your insurance company if your insurance then needs updating. This will ensure that any claims won’t be denied and can even help you save a bit of money.
Take advantage of professional guidance
To help avoid all of these mistakes, take advantage of professional guidance! Without clarification from an insurance broker, it’s easy to misinterpret policy terms and options, it can be harder to update your coverage, you may miss out on savings and future discount opportunities, and you could overlook things such as flood insurance.
At Nest GI, we can help tailor insurance solutions to protect what matters most to you. We give high quality general insurance advice to ensure you have a straightforward experience when choosing property insurance, and so that you don’t make any of the common mistakes listed in this article! Need advice on choosing the right property insurance? Get in touch with us today to see how we can help.
