A lot of homeowners are trying to cut costs, and they often focus on property insurance, thinking that cutting back will save money. However, if something happens, they'll regret it.

NEW YORK - One of the most critical issues that face the country today is unemployment due to COVID-19.

Being a homeowner, you may be trying to find ways to save money. Making sure that your home is properly covered and that you're getting the best deal out of your home insurance makes good sense nowadays.

Avoid these 3 home insurance mistakes:

Your home is your largest financial investment. But it is vulnerable if left unprotected from fire, a natural disaster, theft, and vandalism, injuries suffered while on the property, or some other mishap. A lot of people think things like this will never happen - until it does.

It is important to explore your home insurance options and avoid these three main home insurance mistakes.

1.Not having enough insurance coverage

2.Not having the appropriate coverage in advance

3. Not having natural disaster insurance

Not having enough insurance coverage

It can be a costly mistake if you will underinsure your home. Most of the homeowners only have enough coverage to cover their mortgage. However, you may only receive that amount if it's destroyed, that is given that your mortgage or the equity in your home is only worth 75% of your home's value. Which may not cover rebuilding.

At the same time, you may have a policy that only covers the current value of your home. Problem is, your home's current value may not cover the actual cost to rebuild at today's prices. That's why it's important to get coverage close to that amount and know what it will cost to rebuild.

This is also applicable to your personal belongings.

Canvassing and comparing multiple insurance quotes can potentially save you hundreds of dollars per year. In general, there are two types of coverage-replacement cost and actual cash value.

1. Replacement Cost Value. When a tragedy happens, unlike actual cash value insurance, replacement cost insurance will replace your belongings at their current value. For instance, if a fire damages your computer, and the cost to replace it today is $1,200, you are paid $1,200, even though you may have paid $1,000 two years ago.

2. Actual Cash Value. Actual cash value insurance will reimburse you for the cash value of your personal belongings. But, your belongings are not worth as much as they were when you bought them because of depreciation, so you are instead paid with the actual cash value at the time the tragedy occurs, not what you paid for them.

Not having the appropriate coverage in advance.

It is not uncommon to discover that your homeowner's insurance policy doesn’t cover natural disasters, or only part of the damage is covered most of the time. Worse yet, the type of damage you suffer is excluded from your policy.

Hazard coverage is normally included on most standard policies, which covers the physical loss and damage to your property and possessions, and liability courage, which covers injuries to people while on your property, like slipping on your front steps.

According to the Insurance Information Institute, standard coverage may also include damage from:

• Explosions

• Riots and civil unrest, vandalism and malicious mischief

• Theft and vandalism

• Volcanos

• Windstorms and hail

• Damage from an aircraft or vehicle

• Fire and smoke damage

• Falling objects

• Lightning strikes

• In-home water damage (from within the home only)

Including your personal possessions like expensive jewelry, musical instruments, cameras, or electronics that may be stolen or damaged, you may want to have them covered too. Or perhaps, coverage for living outside your home while it's being rebuilt. If someone unfortuantely slips on your front steps, you'll want to have enough coverage to pay their medical bills.

Having adequate insurance is vital. Having the appropriate insurance coverage is just as important. To ensure your insurance is suitable for your circumstances, visit Credible to check out plans, providers, and costs.

Not having natural disaster insurance.

Depending on the location of your home, you may need flood, earthquake, or region-specific insurance to ensure you have adequate home insurance in the case of a natural disaster. Such coverages are not generally standard with most homeowners insurance policies.

Flood insurance is a federal program that accepts everyone who needs coverage, that is why it's not hard to get. If you happen to live in earthquake-prone areas, your insurance carrier may also require earthquake coverage to qualify for a mortgage.

Extra flood and earthquake insurance normally cost from about $70 to $250 per month on top of your homeowner's policy, depending on the value of your home and location, according to FEMA.

Whether you're searching for a new policy, renewing your current policy, or investigating your options as a new homeowner, you may also want to consider if you want coverage that is not typically standard on most homeowners' policies. Having add-ons to your policy may cover things like termites or other pests, mold, sewer backups, or damage due to lack of maintenance on the residence. Contact My Tampa Agent for your real estate needs.

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