3 Homeowners Insurance Mistakes That Could Cost You a Lot of Money

For many people, a home is the largest investment they will make. When hundreds of thousands of dollars or more are at stake, it’s essential to protect that investment. You can do so by purchasing homeowners insurance. But avoid making costly mistakes with your policy. The team at Mehr, Fairbanks & Peterson Trial Lawyers in Lexington, KY, has extensive experience with insurance cases and shares mistakes to avoid when buying coverage. 

3 Homeowners Insurance Mistakes to Avoid 

1. Underinsuring Your Home 

It seems logical to purchase an insurance policy that covers the amount of your mortgage, but that might not be enough to repair your home in the event of a disaster. The purchase value of your house is not necessarily equal to the amount it would cost to rebuild it, and many families struggle to restore their dwellings after a catastrophe because of this miscalculation. To determine the true cost of rebuilding your home, speak with a home-replacement cost estimator. 

2. Misunderstanding Your Deductible 

Many homeowners insurance policies include a deductible for damage caused by a covered event. This deductible can vary from a few hundred dollars to many thousands of dollars. You may be able to make up for any deductible out of your own pocket. Make sure you understand how the deductible works when choosing a policy so you can keep enough money in your emergency fund to cover the deductible. 

3. Failing to Secure Mold or Sewage Backup Insurance 

Sewage backup and mold can cause extensive damage in a house, but you should never assume you have coverage for either occurrence. Most homeowners insurance policies limit this coverage or require you to purchase supplemental coverage for it. Make sure you understand what’s included in your policy and consider adding mold and sewage backup coverage if necessary. 

If you’re facing a homeowners insurance dispute, for a free consultation, call Mehr, Fairbanks & Peterson Trial Lawyers in Lexington, KY, at (859) 225-3731. An attorney on their team can assess your situation and help you determine the best way to proceed. To learn more about their practice, visit the firm online. Like them on Facebook for tips and updates from the law firm.