Nick, & Cindy Davis

5 expensive homeowner’s insurance complications you should avoid

by

We work with many buyers here in the Tampa Bay Area, we would like to help cultivate an understanding of the important factors new homeowners need to consider when purchasing an insurance policy.

 

5 expensive homeowner’s insurance complications you should avoid

5 expensive homeowner’s insurance complications you should avoid

 

Here are a couple pitfalls homebuyers can avoid when deciding on homeowner’s insurance:

1. Underinsuring their new home

Neglecting to purchase enough insurance could leave you with thousands of dollars in uncovered damages or losses.

Outside structure: As market prices generally rise, the same is true for the actual price to rebuild. In the event you only insure up to $200,000 but have $250,000 in damages, your new homeowner’s are likely to be at a $50,000 deficit.

Valuables items plus: A valuable items plus places higher limits on higher priced items including engagement rings, cameras, computers and high price antiques. It’s best to get these items appraised for theirvalue and adjust limits accordingly.

Home improvements: As time goes by, you will almost certainly make improvements which can include renovating the kitchen, bathroom or adding on an addition. With regards to insurance, up to 40% of home insurance buyers do not ever update their policy to equal their improvements.

2. Thinking deductibles are fixed

The majority of people think that their deductible are fixed in every case. While true for the majority of scenarios, this isn’t always the case for major weather events like for example windstorms or hurricanes.

In those cases, the deductible is probably not a fixed $500 or $1,000, but instead a percentage of the coverage amount. This results in a a lot higher deductible than you originally anticipated.

The best recommendation we can provide is to ask your chosen insurance agent about any adjustments to deductible amounts in accordance with the type of claim filed.

3. Assuming flood insurance is included

Many first-time homebuyers are under the illusion that flood insurance comes bundled with a homeowner’s insurance policy, or you may assume you do not have to purchase flood coverage since you live in a low-risk zone.

Any experienced insurance agent can tell you that flooding may occur in any area, irregardless of predicted risk. Just let the facts speak for themselves.

The National Flood Insurance Program (NFIP) reports that more than 20% of flood insurance claims happenbeyond the borders of identified flood plains.
Low-risk zones receive one-third of federal disaster assistance for flooding.
Over one decade (2006-2015), flood insurance claims averaged in excess of $1.9 billion each and every year.

While Mother Nature can’t be controlled, it is possible to equip yourself with knowledge which can help you bypass costly mistakes.

If you should need a little added persuasion, we’d like to share with you that flood insurance is extremely affordable with many paying $100 or less annually.

4. Figuring mold or sewage-backup is protected

While a typical concern for homeowners today, most will be shocked to discover that these items are not covered having a standard homeowner’s insurance policy.

Out-of-date sewage lines are responsible for increased sewage backup,that may damage the whole structure of a home, including floors, walls, furniture and electrical systems.

Mold has over 1,000 species that grow in the United States. Although prevention is the most effective method for preventing growth altogether, a small add-on to your policy should protect your new home should a predicament arise.

5. Opting out of earthquake coverage

Nick lived in New England when he was growing up, and the majority of people decide to opt-out of earthquake insurance because seismic maps indicate that this area is inside a low risk for this natural disaster.

Although thought to be an educated decision a number of people, we might believe that natural disasters can take place anywhere at any moment, even in the least likely of places.

New homeowners, especially first-time homeowners, don’t know what they don’t know, so it’s our job in helping educate you before it’s already happening.

We work with a very reputable insurance provider here in the Tampa Bay Area who is ready to assist. Let us help you find your new home. We are always a just a click here away or:

 

Start Your Personal Search 

See All Homes For Sale in and Around Tampa Florida 

  • List View
  • Map View
  • Grid View

See all MFR Region Homes For Sale.
(all data current as of 11/21/2024)

Listing information deemed reliable but not guaranteed. Read full disclaimer.