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7 Costly Home Insurance Mistakes to Avoid

​Many home owners make the mistake of living comfortably in their homes thinking that as long as they have purchased any home insurance policy they are safe from anything.
When disaster strikes and insurance claims don’t get paid, they discover too late the mistakes in the policies. Instead of waiting until something terrible has happened, why don’t you review your existing home insurance policy today?
1. Assuming that flood damage is covered
After disasters such as Hurricane Katrina, some home owners could not be compensated for damage since they did not have a cover specifically against flood damage. Even if you have a general home insurance policy, chances are that it does not include compensation for damage and loss of property resulting from floods. You have to buy a specific insurance policy to cover flooding. This is especially so if you live in a coastal area or your house is situated near a major water source such as a river or a lake. You can easily purchase a federal flood insurance cover or get one from a private insurance company.

2. Assuming that earthquake insurance is included in the standard policy
Just like flood damage, most standard home insurance policies also do not compensate homeowners for damage resulting from an earthquake. If you live in an area prone to earthquakes such as Nevada, California, Alaska or Hawaii, an earthquake insurance cover is essential. The policy you purchase should be adequate to cover the costs of rebuilding your house and buying new assets.

3. Underinsuring
A surprisingly large percentage of Americans have underinsured their homes. Many take a policy that covers only the mortgage which in most cases is only 80 or 90 percent of the actual value of the home. Others may purchase a policy whose value is equal to that of the house. The problem with this is that when disaster strikes, it will cost much more to rebuild your home especially if you include labor. It is better to insure your home for a higher value rather than taking the risk of underinsuring.

4. Unnecessary coverage
As much as underinsuring may cost you dearly, going to the other extreme end will have the same effect. If for example you insure your house against flooding but you live in an inland area where there is no river or lake nearby, you are wasting money. The best thing is to find an insurance expert who will appraise your house and tell you exactly what insurance covers you need and what value to insure your house for.

5. Buying from the first carrier you find
One of the most essential home insurance tips that every insurance expert will emphasize on is; shop around for insurance companies before you make your final choice. The best part about working with an independent insurance agency right here in Lake Mary is that we can get you quotes from lots of different companies and we know which ones offer the best rates in different parts of town. 

6. Thinking that sewage backup or mold is covered
Just like earthquakes and floods, damage caused by leaking water from your sewage or drain pipes is not included in a general home insurance cover. Additionally, mold growth damage can only be compensated for in a different policy.

7. Assuming that your deductible is flat and unchangeable
In your mind you know that when you go to file your claim the deductible you will incur will be a certain flat amount like $1000. But in severe disasters like hurricanes you may find that insurance companies calculate the deductible as a percentage of the total insurance value. The deductible therefore becomes much higher than you would have thought.

Buying a home insurance policy is one of the best investments you could make; however, if it’s not the right policy, you could be throwing your money down the drain and at the same time, putting your home at very great risk. Don’t make a mistake with your biggest investment – talk to one of the licensed agents at SunGate Insurance today. Give us a call at (407) 878-7979 or schedule a time to review your policy online.

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