Signing up for homeowners insurance after you buy a house is required by many lenders to protect your investment. However, it can be difficult to decide which insurance policy and features you need. Here are a few mistakes homeowners often make when purchasing insurance. 

Common Home Insurance Mistakes

1. Focusing on Price Only

Buying a home is a big investment, so naturally, you want to save money where you can. However, focusing on price alone could cost you in the long run. Instead, focus on choosing a provider with excellent customer service—always read customer reviews—and one that has a reputation for paying collectors quickly. 

2. Assuming You Have Comprehensive Coverage 

If you live in an area with common damage risks—such as fires or hurricanes—you may falsely assume they are covered. Avoid making assumptions by always reading the terms of the policy carefully. If needed, add additional coverage for natural disasters that are common where you live. To stay on the safe side, evaluate a geological map of your area, or have a personal geological survey performed on your property. 

3.  Not Keeping Your Policy Up-to-Date

Insurance underwriters use the square footage and value of your home to determine your monthly costs, so make sure to update your policy if you renovate, add onto your home, or make changes to your backyard, since your property value will change. Outdoor additions, such as swimming pools, children’s play areas, or trampolines may also increase the amount of liability coverage you need since these are associated with a variety of risks. 

Whether you are in the market for a new home or you are reconsidering your existing coverage, turn to Imperial Agency in Bergen County, NJ. For nearly 40 years, their insurance professionals have helped their clients with homeowners insurance to protect homeowners against natural disasters and other potential issues. Explore ways they can help you by visiting their website or giving them a call at (973) 546-9567.