For the middle class, the family home is the most significant asset; it typically outstrips even one’s 401(k) plan. The home is a legacy that can be left to future generations, and it’s also a viable source of income after retirement. However, there are many risks involved, and many don’t have enough coverage against those dangers. Below are some of the most common mistakes made with Homeowners Insurance Quotes in Southborough MA.
Not Buying Flood Insurance
It can’t be restated often enough: A standard homeowner’s policy does not cover damage related to floods. However, every time there’s a storm in a rarely-flooded area, many families have no protection. According to the III, only 13% of American families have this important coverage. Homeowners can get insurance through the NFIP, which provides up to $350,000 in coverage for the home and its contents.
Inadequate Household Inventory
If a home contains valuable items, they should be documented before disaster strikes-;or a subsequent claim is likely to face challenges. It’s easy to take pictures of items and to save receipts and other supporting documents. Those with very valuable items such as jewelry, antiques and art should talk to a local insurance agent about buying extra coverage.
Not Understanding the Replacement Cost
Market value and replacement cost can drastically differ. For instance, in an older home, local law may require updates to comply with building codes. Homeowners should review the policy to see which upgrades are covered, and they should talk to their agent about adding extended replacement or ordinance coverage when they Get a FREE insurance quote. This add-on expands the coverage limit by 25% to cover the higher replacement cost of code-compliance upgrades.
Failing to Consider Depreciation
Most policies do not insure homes for their replacement or repair cost. Rather, they deduct for depreciation every year, and they only cover the repairs minus the allowance. Many, people unfortunately, base their decisions solely on price, and they’re taken aback by the smaller payment they receive when they file a claim.
Homeowner’s insurance coverage is an important investment, and it can help to protect the policyholder against significant losses. However, the mistakes above can lead to losses as well. By avoiding these common insurance errors, one can find homeowners insurance quotes in Southborough MA and get the right coverage to adequately protect their most important possessions.