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  • Writer's pictureKelly Ann

3 Most Common Insurance Mistakes


It’s ok to ask questions about your homeowner’s insurance. When you purchase, you really should understand what you are getting and what your responsibilities will include. Failing to have a clear picture of all that is included may leave you with a big mess when you find yourself in an emergency where you need to call in your insurance for assistance.


Not Having Enough Insurance

  • Unfortunately, most people find out too late that they did not have adequate insurance for their needs. Often, homeowners simply forget to check in and ensure their insurance aligns with their most current assests, living situation, and lifestyle.

  • It’s important to know the value of the items in your home. Taking a home inventory can help you identify what kind of insurance you will need to cover valuables should they become lost or stolen. It will also help you decide if you need extra coverage for larger ticket items such as jewelry, art, or heirlooms.

  • Big life changes, like purchasing a new house, are good times to check in and possibly shop and compare rates to make necessary changes. Talking with your insurance agent and doing an overall assessment of your possible risks and needs is by far the best way to get you adequately covered and to go over any needed changes.

Not Knowing Your Policy

  • When it comes to insurance there are a lot of scenarios and possibilities. It’s important to know what a policy does or does not cover. Most basic policies have limits, so extra coverage may need to be added to have you properly covered. For example, most insurance policies do not cover wind, hail, earthquake, or flood damage. If you live in a high-risk area you may need extra coverage.

  • It is very important for policy owners to check whether they have a recoverable or non-recoverable insurance policy. Not planning ahead in accordance with your plan may leave you with costs you are not prepared for or comfortable covering.

  • Read your policy and be aware of terms used. Some are very broad, and others may be more restrictive. Pay close attention to how the insured and insured location is defined in the policy. Be on the lookout for things that may be left out of coverage limits.

Not Knowing Your Deductible

  • In the event of a loss, you’ll be responsible for your deductible. You don’t want the cost of your deductible to cause added stress to an already difficult situation. Plan ahead, have an emergency fund, and know what you are financially comfortable covering if the need arises for you to make a claim.

  • Remember there are options when it comes to deductibles (amount you pay out-of-pocket) and premiums (amount you pay for your policy each month). The higher your deductible the lower your premiums and vice-versa.


Don’t take the chance that your insurance will have your back when you need it. Now is the time to get to know your homeowner’s insurance. A great way to start is by talking with your insurance agent.

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