The Five Biggest Mistakes People Make with Homeowners Insurance

The first mistake is the amount of coverage on the dwelling is not enough. Many times the bank pays the premium and the policy just renews automatically and the coverage doesn't keep up with inflation. You should take a look at this coverage at least once every two years.

The second mistake is the deductible is too low. Hey, you're probably not going to put in a small claim so why pay a higher premium on a lower deductible? Consider increasing that deductible to $2,500 or more and you could see a significant savings!

The third mistake is the wind or hurricane deductible is too high. I've seen wind deductibles as high as 10% of the amount of the dwelling. This means a $500,000 house wouldn't be covered for the first $50,000 of wind or hurricane damage! Do you know what your deductible is for a hurricane or wind damage?

The fourth mistake is failing to scheduled jewelry. In New York, the unendorsed homeowner policy usually only covers up to $2,500 for jewelry with a $500 limit per item. You should consider adding any expensive jewelry to your homeowner policy.

Mistake number five is no umbrella coverage. You could buy a extra $1,000,000 of liability coverage (over home and auto) for as little as a $175 a year!

If you have any questions about this or any other insurance issue give us a call (631) 744-1393 or email info@clausenagency.com