Buying home insurance doesn’t have to be a pain the neck, especially if the buyer read every clause in the policy per premium. Overlooking or avoid having to read the clauses will lead to a reduced payout or not receiving any compensation at all if something goes wrong. To put it differently, when a buyer files a claim for items that’s damaged but covered in the premium the insurance agent will ask for an estimate and if the estimate is incorrect for the totaled needed, the buyer could get a very small payout or no payout at all. To avoid experiencing the unexpected below are 5 annoying home insurance traps to avoid.
Reduced Premiums
Seeking reduced premiums is a common mistake most home insurance seekers go for because they are looking to save money while at the same time believing they are getting a great plan to cover their items. Home insurance brokers look to see if the buyer fits the “Low Risk” profile and if so, they will offer the cheapest premium they have. This strategy allows the insurance company to reel buyers in but also save them money if damages occur to the insured’s property. As a result, the insured will end up having to come up will a lump sum to replace the uncovered items.
Automatic Annual Renewals
Automatic annual renewals can come in handy if the insured is forgetful when it comes to remembering his or her renewal date. However, there are many downfalls when opting in auto annual renewals. The most common downfall is not seeing the annual increase in the monthly amount beforehand. In other words, the insured won’t get an opportunity to disagree about paying a higher than normal premium. Another negative to auto annual renewals is when the premium goes up, the coverage doesn’t.
While the insurance market is very competitive, the insured will be missing out on a better deal offered elsewhere.
Specified Items
As stated earlier, it’s very important to take time to read through the home insurance clause as well as the terms and conditions because most companies limited the number of a specific item that will be covered if any claims are filed due to damage or theft. While the cost of the premium may increase, it’s important to specify every valuable for complete coverage these valuables can include antique furniture or high-end shoes. Also make sure the premium will cover the items when away from the home.
Remember; never assume that all property is automatically covered, especially “high-risk” items such as laptops or flat screens.
Running a business from home
To avoid having a claim rejected, never run a business from the home without notifying the insurance company. Make sure to be upfront about the business because another type of insurance may be required depending on the type of business being operated from the home.
Neglecting to keep policy up to date
Throughout the course of the term, things are likely to change. For instance, the insured may install a pool or even add an extra room to the home. If this is the case, always make it a priority to notify the home insurance company to ensure adequate protection will be provided in the future. If the insured fails to update hi policy, he may not have enough dwelling coverage in the event of a disaster.
Sudbury Insurance Brokers is the best place to begin obtaining a great premium and excellent coverage.