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Every homeowner can benefit from taking out home insurance. However, it’s also important that you choose the right policy and take the right precautions when getting insured so that any claim you make is successful (if you ever have to make one). Below are just a few of the mistakes that homeowners can make when it comes to home insurance, and what you should do instead.
Not checking what you’re covered for
Most home insurance schemes will cover you and your contents against damage from fire, smoke, theft, burglary and weather damage. However, it’s important to read into this to find out exactly what you’re covered for. For example, when it comes to weather damage, many insurers won’t cover you against rain or flooding – you may need special insurance for this. Earthquakes are similarly not covered by most regular home insurance schemes. Some of your contents may also not be covered such as precious jewelry or rare expensive collectibles. Don’t make the mistake of assuming you’re covered for certain things.
Undervaluing your belongings
When it comes to insuring your belongings, some insurers will ask you to value those belongings. Make sure that you choose the right value – in the event of a fire or a natural disaster that destroys most of your stuff, you don’t want to be paid out $2,000 when your belongings were worth at least $4,000. This is a mistake many people make and later regret.
Leaving your home unoccupied without telling your insurers
If you plan to leave your home unoccupied for more than a month, make sure to tell your insurer. Some insurance companies will not cover you if you leave your property vacant longer than this. By warning your insurer in advance however, you may be able to adjust your policy to cover this.
Letting your home out to a lodger/tenant without telling your insurer
You may also find that your coverage becomes void if you rent your home out to a tenant or a lodger without notifying your insurer. You typically need separate landlord insurance when you take on a tenant or lodger – this is something you should apply for as soon as you start renting out your home.
Leaving windows and doors open/unlocked
Almost all insurers will refuse to pay out compensation for a burglary claim if windows or doors were left open or unlocked. Make sure that whenever you leave your property vacant, all doors and windows are firmly shut and locked (providing they can be locked).
Not getting legal help when making a claim
The process of making a claim can be complicated. Sometimes it’s worth hiring an insurance adjuster to help with the process to maximise the chance of your claim being approved. If your claim has already been rejected, bear in mind that you may be able to hire an insurance adjuster to make an appeal – there may be a second chance of getting the compensation you deserve.
Automatically renewing your insurance without comparing rates
A lot of us let our insurance schemes automatically renew each year without taking the time to check what other deals are out there. It’s worth checking to see what other insurers are charging – you could pay a lot less by switching in some cases.
We hope these tips help; thank you so much for reading!
