
We get it. You love to hate it. Home Insurance is just another automatic payment that comes out every month that you just wish was cheaper.
In the midst of calling the top 3 companies on your list (or more if you’ve got the time and patience), the #1 goal for you is to get that price tag DOWN!
But hold on a sec….what does that lower price tag really mean for your coverage?
When it comes to buying home insurance, there are some major mistakes that are easy to make in the eternal quest for a cheaper policy. From underinsuring your home or belongings to expecting coverage for things that simply aren’t included in your policy, keep reading to make sure you avoid these mistakes!
1.You Assume Your Policy Automatically Covers Water Damage
Let’s be real here…we live in Newfoundland and Labrador. There’s more rain than sunshine and we just need to accept this fact. Ok, now onto the insurance.
Most standard home insurance policies tend to cover some types of water damage (like bursting pipes or appliance malfunctions), however, damage caused by water that enters your home from external sources is generally not covered. This includes water that enters your home from a heavy rainfall, a sewer backup, or when that trusted sump pump fails you. While these may not be included in your regular policy, you may actually be able to purchase additional water damage coverage to protect you in the event that one of these very unfortunate events takes place.
2.You Have Undervalued Your Belongings
Believe it or not, you have a lot of stuff! Whether you consider yourself to be a minimalist or maximalist, you could be sitting on a pile of things worth way more than you’d like to think.
If you set your coverage limit too low, you’re going to have a hard time replacing those items. But…how do you know how much your items are even worth? Well, a home inventory of course! Go around your home and compile a digital inventory of all of your items and determine how much it would cost to replace each one. Then go ahead and set your personal belongings limit accordingly.
And don’t forget, if you’ve got some high value items (such as an expensive piece of art or jewelry), you should also look into getting specialty coverage for those specific items.

3.You Chose a Deductible That You Can’t Afford to Pay
Look at you, you bet the system and chose a really high deductible in order to lower your monthly payments! But…uh…now you actually have to pay that deductible, yikes!
The deductible in an insurance policy is the amount you agree to pay out of your own pocket before your insurer will step in and pay the remaining balance of a claim. When you’re shopping around for home insurance, you might notice that choosing a higher deductible tends to give you a lower premium (the premium is the yearly amount your policy costs you). But — what happens when you decide to make your deductible $5,000 and now you’ve got a claim. You may have saved $20 per month on the policy, but now you’re tight for cash and you have to pay out that $5,000 before your insurance company will step in and pay the remaining balance (which might only end up being $1,000 after you’ve paid your amount).
But it’s important to choose a deductible you’ll actually be able to afford to pay. Even though a lower deductible might mean your premium payments are slightly higher, that might be easier for you to manage than paying a larger lump-sum deductible in the event of a claim. When choosing your deductible, be sure to consider your financial situation and think about how much you will be comfortable paying out-of-pocket if you ever need to make a claim.

Let’s recap…
Next time you go to get a home insurance policy remember the 3 A’s, Automatic, All, Afford. Is it Automatically covered? Does it cover All my belongings? Can I Afford that deductible?
If you’ve got any questions about this article and what you may or may not be covered for, give us a call or shoot us a text! We won’t make you wait 2 hours to answer and we promise to explain it to you in real-people terms, simple and straight to the point!