As you set your resolutions for the new year, improving your home insurance coverage in Louisiana might be one of your top goals.
But before making any changes, it’s important to be aware of some common home insurance mistakes.
Understanding these pitfalls will help you avoid them and make more informed decisions about your coverage options.
Not Understanding Your Home Insurance Needs
One common mistake many homeowners make is not fully understanding their insurance needs.
If your dwelling coverage doesn’t match your home’s replacement cost, you could end up underinsured if you ever need to rebuild in Louisiana.
Don’t forget to factor in inflation and the rising cost of building materials when reviewing your coverage.
The same goes for personal property coverage. Have you purchased new valuables, electronics, or collectibles over the past year? Make sure your policy reflects their current value to avoid any gaps in protection.
Another common mistake is skipping umbrella insurance. This extra layer of coverage can help cover costs that exceed your homeowner’s policy limits, giving you peace of mind.
Read more: Is Your Home Underinsured? How to Re-Evaluate Coverage
Setting Your Deductible Too Low or Too High
Your deductible is the amount you pay out of pocket when filing a claim.
A higher deductible can lower your premium, but it also means paying more if you ever need to file a claim.
On the other hand, a lower deductible increases your premium but reduces your out-of-pocket expenses when you make a claim.
Take a close look at your financial situation. How much can you comfortably pay out of pocket if the unexpected happens?
Adjusting your deductible is a great way to strike the right balance between getting solid coverage and keeping premiums affordable without stretching your budget too thin.
Not Letting Your Insurer Know About Major Renovations
When you make major changes or upgrades to your home in Louisiana, you could be increasing its value—and that might directly impact your insurance premiums.
In some cases, your premiums could go up, but in others, they might go down if the renovations improve your home’s resilience or reduce risks.
If you don’t inform your insurance company about these changes, you might end up underinsured.
This means that if something happens to your home, your coverage might not fully protect you, leaving you with significant out-of-pocket expenses.
Having a conversation with your insurer before starting renovations may feel like an extra step, but it’s one that can save you headaches (and money) down the road.
Being upfront about your plans allows your insurer to adjust your coverage to reflect the true value of your renovated home.
Read more: Renovating Your Louisiana Home? Insurance Tips to Know Before You Start
Not Taking the Time to Shop Around for Home Insurance
If you’re not shopping around for home insurance in Louisiana, you could be missing out on better coverage at a more affordable price.
Insurance premiums and policies can vary widely between providers, and it’s easy to assume your current policy is the best deal without exploring other options.
Comparing quotes from different insurers is a simple step that can save you money and ensure you’re getting the coverage you truly need.
It’s definitely worth reaching out to a home insurance agency, like TSL, to help explore your options.
An experienced agent can guide you through the policy details, explain coverage options, and help you find the best fit for your home.
Ignoring Exclusions in Your Home Insurance Policy
Every home insurance policy comes with exclusions—things that aren’t covered. It’s important to know what’s not included to avoid surprises later.
For example, most home insurance policies don’t cover flood damage. Since Louisiana is especially prone to flooding, it’s a good idea to consider getting separate flood insurance.
Without it, you could be left paying out of pocket if a flood damages your home. It’s worth reviewing your policy to make sure you have the coverage you need.
Read more: Do I Need Flood Insurance in Louisiana?
This new year, avoid these common home insurance mistakes and start off on the right foot. For your home insurance needs in Baton Rouge, Lafayette, Franklin, Abbeville, and Luther, reach out to us.
We’ll review your current coverage to make sure you’re fully protected and recommend the best options available to fit your needs. Let us help you start the year with the right protection.
Recent Comments