You’ve invested a lot of money, time, and effort into purchasing your home, so it makes sense to protect it with high-quality homeowners insurance. Unfortunately, buying insurance can be a confusing and overwhelming process, and people often make mistakes that end up costing them down the line. Research these common mistakes to ensure you can avoid them when its time for you to buy homeowners insurance.

Common Mistakes When Buying Homeowners Insurance

1. Failing to Shop Around

No two insurance policies are identical, as different providers offer different products and charge various amounts for them. You won't be sure you're getting a good deal on your plan unless you know what other companies are offering. Get quotes from at least three companies before buying homeowners insurance so you’ll know what's available, what it costs, and who’s offering the best deal.

2. Selecting Based Exclusively on Price

Many people are tempted to choose the least expensive policy, regardless of the terms. Instead of making this mistake and potentially finding yourself in trouble in the future, select the policy that provides the best value. For example, you may be choosing between two plans, with one offering you better coverage for only a few dollars more a month than the cheaper plan. Even though this plan costs more, it’ll better protect you and your home.

3. Ignoring Exclusions

Many people assume their home is protected against all perils once a homeowners insurance policy is in place, but this isn't true. Most insurers exclude damages caused by floods, earthquakes, mudslides, sinkholes, and other events. Make sure you understand your policy's exclusions and buy supplementary insurance for excluded events if needed.

4. Leaving Their House Underinsured

Some people only buy homeowners insurance because their mortgage lender requires it to protect their investment. As a result, buyers only purchase the minimum amount needed to cover the outstanding loan balance. Unfortunately, this leaves the homeowner with no ability to rebuild and no compensation for lost equity in the home. Call a builder, request an estimate for the cost to rebuild your home, and have it insured for that amount.

If you need help putting together a homeowners insurance policy, contact the local agents at Area Wide Insurance Agency in Naples, TX. This independent brokerage company has served northeast Texas for over 35 years. In addition to homeowners insurance, they also carry auto, life, and renters insurance, all at competitive prices. Check out their website to learn more about home insurance, or call (903) 897-5651 to request a quote.