Most Common Mistakes When Buying Home Insurance

Published on Friday May 13, 2022

With the growing digital trends, the answer to our most commonly asked question, “Can you buy home insurance online?” is yes. Specialty insurance is accessible and made completely hassle-free in just three steps. 

Purchasing a specialty home is a great decision, and we’re here to support that. But, when searching for a coverage plan, there are a few things to consider. These include considerations such as the type of coverage for your home to the accurate valuation of your property and belongings. Homeowners’ insurance can be confusing, but that shouldn’t stop you from getting the specialty insurance that fits your needs.

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Below, we navigate the most common mistakes made when browsing for the right specialty insurance. Mistakes that many homeowners experience include underinsuring their home, not including personal belongings, and not taking the make or model of the house into consideration. These can all compromise the protection you’re entitled to. 

While daunting, you can eliminate these mistakes with a custom homeowners insurance quote. At Covertree, our experts have decades of experience and can help you steer clear of these errors when taking out a specialty insurance policy. 

Common Homeowners Insurance Mistakes

1. Assuming Your Insurance Covers Water, Fire, and Earthquake Damages

When purchasing homeowners insurance, people commonly mistake all types of damages to be covered in the home insurance policy. If you’re in an area prone to earthquakes, damages caused by an earthquake can be rather expensive if your home is not protected.

Similarly, if you live in an area prone to flooding, mold damages from clogged drains, failed pumps, and gutters are not covered under most basic homeowners insurance plans. In this case, water backup coverage is necessary. These out-of-pocket expenses can quickly accumulate over time, but with help from our experts, you can add this level of coverage to your existing plan. 

2. Not Valuing Personal Belongings

This common specialty insurance mistake is seen commonly in different home types. People tend to undervalue their personal belongings. When faced with loss, you might not be able to cover the total loss if you don’t have personal belongings coverage. To recover or even replace these essential items, thorough research or a detailed home inventory would be a significant start. 

3. Choosing The Wrong Insurance Company

Your home is one of the most important investments you’ll make throughout your life. So, choosing a specialty insurance company to protect the most valuable asset makes the most sense. Picking an average run-of-the-mill insurance company jeopardizes you and your home, compromising everything you’ve worked for. 

An average insurance company without a specialization in specialty homes might have a generic “one quote fits all” approach, contrary to what we believe in. At Covertree, our niche is specialty home insurance, especially for factory-built houses. This is something not every homeowner’s insurance company specializes in.

4. Miscalculating Property Based on Market Value

Homeowners undervalue their property based on market value. The consideration for the cost of production and labor tends to exceed the market value for the property. In case of inhabitable damages, you might get an amount lesser than your damages. To avoid this, getting a custom quote makes it a lot easier.  

5. Miscalculating Deductibles

Payout of pocket is the amount paid before your insurance pays for the claim. These deductible amounts come in various types, from a single rate payout to a percentage. It’s crucial to select a realistic deductible that you can pay if you’re filing for a claim. Commonly seen, lower deductible translates to higher premium payments which are easier to manage in the long run. Here’s a little insight into how you can lower home insurance premiums.

Covertree is Different. Here’s Why

As a premier specialty insurance company, we can cover any type of factory-made home. Our experts know the ins and outs of specialty insurance, from modular homes, ADUs, stationary travel trailers, tiny homes to park models, and even multi-section homes. 

Our diverse spectrum of homeowners insurance plans covers your property, personal belongings, and extra structures. With some of the most competitive rates in the industry, rest assured that your home is in good hands. 
Get started today in just three easy steps.