Buying a home is the largest financial commitment you’re ever likely to make. Such a substantial investment needs to be properly protected, which requires adequate homeowner’s insurance. However, not all policies are the same, so it’s important to make sure you select the right one. When it comes to choosing coverage, even a minor oversight can end up causing you great financial hardship. Thus, here are some of the most common mistakes to steer clear of.

What to Avoid When Shopping for Homeowner’s Insurance

1. Not Getting Enough Coverage

When deciding how much homeowner’s insurance to buy, it’s essential to take into consideration the value of your home and all your possessions. This is the only way to ensure you have enough coverage to fully replace your home and belongings if everything is destroyed. All too often, people fail to get the appropriate amount of insurance and are left lacking the funds they need to rebuild. It’s typically better to insure your home for its replacement cost, which will cover all the expenses of rebuilding at today’s prices instead of its actual cash value, which will subtract depreciation.

2. Assuming You’re Covered for Any Disaster

Many policyholders are under the assumption their coverage will protect them from any kind of disaster that arises only to realize too late that this isn’t the case. The truth is, most standard home insurance policies have several exclusions, including damages caused by flooding, earthquakes, termites, and mold. If you want to make sure you are covered under such circumstances, it may be necessary to buy a separate policy. It’s wise to read through your policy and gain clarity on what it covers.

3. Purchasing a Policy Based on Price

While there’s nothing wrong with wanting to get a good deal, your homeowner’s insurance is not something you should skimp on. Rather than focusing on finding the lowest price when comparing policies, it’s best to base your decision on the provider’s reputation and the type of coverage that’s offered. Your insurance agent can advise you on different ways to reduce your premium and apply any discounts you qualify for.

Whether it’s your first time shopping for homeowner’s insurance or your current policy is up for renewal, the professionals at Superior Insurance will help make sure you are sufficiently covered. Over the last decade, they have been proud to offer residents throughout the Triangle area of North Carolina high-quality and competitively-priced insurance products. They will go over all your options with you and provide a customized solution that fits your unique needs. Call (919) 790-9699 to schedule an appointment, or visit their website to request a quote.