5 Common Home Insurance Mistakes and How to Avoid Them

Home insurance is an essential safeguard for homeowners, but navigating the complexities of policies can be daunting. Many people inadvertently make mistakes that could leave them underinsured or paying more than necessary. That’s what we are here for — when you work with Cushman Insurance, you can live more and worry less.

We’re breaking down five common home insurance mistakes and how to avoid them.

1. Overlooking Discounts

One of the biggest missed opportunities in home insurance is not taking advantage of available discounts. Insurers often offer a range of discounts for various reasons—such as bundling home and auto insurance, having security systems in place, or being a loyal customer.

How to Avoid This Mistake:

• Ask Questions: When shopping for insurance, inquire about all available discounts.

• Review Annually: Revisit your policy each year to check for new discounts that may apply as your circumstances change.

• Compare Policies: Different insurers offer different discounts, so it’s worth comparing multiple quotes.
  

2. Not Reading the Fine Print

Insurance policies are notorious for their lengthy and complex documents. Many homeowners skim through the fine print or skip it entirely, which can lead to surprises during the claims process.

How to Avoid This Mistake:

• Take Your Time: Set aside dedicated time to read through your policy in detail.

• Ask for Clarification: If there’s jargon or clauses you don’t understand, don’t hesitate to ask us for clarification.

• Highlight Key Sections: Make note of important sections regarding coverage limits, exclusions, and claims procedures.

  
  

3. Not Updating Your Policy Each Year

Whether it’s a renovation, a new addition, or changes in your personal life, life changes can affect your home insurance needs. Failing to update your policy could leave you underinsured or miss out on potential savings.

How to Avoid This Mistake:

• Annual Reviews: Schedule an annual review with your Cushman agent to discuss any changes in your home or lifestyle.

• Notify Your Insurer of Changes: Whenever you make significant changes (like renovations or acquiring valuable items), inform your insurer immediately.

• Assess Coverage Needs: Regularly evaluate whether your coverage limits reflect the current value of your home and belongings.

  
  

4. Not Having Enough Liability Coverage

Liability coverage protects you against legal claims resulting from injuries or damages that occur on your property. Many homeowners underestimate how much liability coverage they need, potentially leaving themselves vulnerable to financial risks.

How to Avoid This Mistake:

• Understand Your Risks: Consider factors like the number of visitors you have, the layout of your home, and if you have any pets, which could increase your liability exposure.

• Consult with Your Agent: Discuss your specific needs with your Cushman local agent to determine an appropriate liability limit.

• Consider an Umbrella Policy: If you have significant assets, an umbrella policy can provide additional liability coverage beyond your home insurance.

  
  

5. Choosing the Lowest Premium

While it’s tempting to go for the lowest premium available, this can lead to inadequate coverage or poor service. The cheapest option might not offer the necessary protections or may come with higher deductibles.

How to Avoid This Mistake:

• Evaluate Coverage vs. Cost: Look beyond the premium and consider what each policy covers and how it fits your needs.

• Research Insurer Reputation: Read reviews and check ratings for customer service and claims handling before making a decision.

• Balance Premium and Deductible: Ensure you understand the balance between your premium and deductible; a lower premium might mean a higher deductible when you file a claim.

By avoiding these common home insurance mistakes, you can ensure that you have adequate protection and peace of mind. Regular reviews and proactive communication with your insurer are key to making the most of your policy.

Stay informed, and we can help you navigate the insurance landscape with confidence!