The 4 Biggest Mistakes You Can Make with Home Insurance
Some people refer to mistakes as “happy accidents,” but there's nothing happy about making mistakes when it comes to home insurance. Here we'll cover the four biggest mistakes you can make and how to steer clear of them. 
Mistake #1: Value vs. Replacement
When you purchase a home insurance policy, you likely want it to cover replacement cost and not value cost. If your home and belongings are destroyed, you’ll want a payout comparable to what you lost, including adjustments for inflation and rising construction costs. Many times, the cost to rebuild your home is much higher than its original value.
Mistake #2: Your Coverage
Experts state that the biggest mistake made by homeowners is not having enough insurance coverage to rebuild their house should it be destroyed. They also estimate that over half of the homes in the United States do not have enough coverage. Many homeowners only carry enough insurance to cover their mortgage, which likely doesn’t cover the whole value of the home.
Mistake #3: Flood Insurance
Flood insurance is not a standard part of a homeowner’s insurance policy. If you live near water or a flood plain, you should purchase it. Even if you do not live too close to water, you should consider it. Talk to your agent about flood claims in your area for a better idea of your coverage needs.
Mistake #4: Sewage and Mold Coverage
Most policies either have claim limits or simply do not offer mold or sewage backup coverage. Luckily, you can purchase sewage coverage separately for a nominal fee. Mold insurance is not quite as easy to obtain. If you can find it, it can run up to $500 a year. Even with its high cost, you should look into coverage for mold, especially if you live in a humid area, as removing mold is costly.
Make sure that you are not making costly mistakes with your homeowner's insurance policy.
We’ll keep you on the right track. Call Insurance Agencies Inc. at (609) 646-1000 for more information on Northfield home insurance.