1. Not knowing exactly what is covered by your policy.
2. Not realizing that part of your escrow payment is an insurance policy.
3. Thinking that home insurance rates are regulated and therefore the same.
They aren't. Check around to save money.
4. Having a policy that doesn't
pay the entire cost of replacing the home if it were destroyed. Make sure your
policy pays what it would realistically cost to rebuild from scratch.
Not having a policy that states you will be paid in replacement cost value, not
cash value. Replacement costs vary. Cash value doesn't. This is a good way to
get caught short.
6. Not having a written and photo record of your stuff�especially
the big ticket items-and not knowing how much you paid for those items.
Not finding a safe place to keep your record is a mistake too. If the home is
destroyed, what good is it if your list was in the hall closet?
looking at your building codes when figuring your replacement costs. Some new
codes could substantially raise the rebuild cost.
9. Not revamping your
insurance before and after a remodel.
10. Assuming you don't need flood
insurance because you don't live on a flood plain.
11. Not shopping around
for the best deal or biggest discounts.
That�s It in a Nutshell...
inside scoop on homeowner�s insurance. Ready to test your knowledge by taking
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