Homeowners Insurance - 7 Tips to Avoid Mistakes before Buying Your policy- part 2 of 2

By Adams Bridges

Homeowners insurance is the most important way to protect your most valuable assets. Before you buy homeowners insurance policy, bear in mind these seven tips to avoid wasting your money. In this article I refer to the most common mistakes the insurance buyers make while they buy their first policy. By avoiding these mistakes you can save a hundred of dollars by decreasing your premium.

5- Read the policy carefully before you buy your homeowners insurance

One of the most common mistakes that some homeowners do is signing up their policy without read it thoroughly. The exclusions of the insurance coverage are written in separate part. You should read the small prints patiently. And if you have any question about unclear term on the policy, ask your agent to clarify it. Educate your self about your state insurance laws before you buy your homeowners insurance policy.

6- Review your policy to avoid being under inadequate coverage

Review your policy once a year, in case you build an addition to your home you should include this addition under your coverage. If you update your electrical and plumping systems you have to do the same. The building materials and labor cost change over years and that may leave you under inadequate homeowners insurance coverage if you ignore reviewing your policy

7- Take an inventory of all your valuables items

If you are ready to buy your homeowners insurance policy, it's a good idea to start to perform a home contents inventory to ensure that contents value doesn't exceed the 70% of the price of your home structure. If you have expensive items like jewelry or artwork resulting in exceeding this limit then you need a rider for more coverage. It's an easy way to take an inventory by taking a video of all your belongings by a video cam. Put every receipt beside its item (especially the expensive items) while you taking the video to show brand, date of purchase and sales price in case you need to file a claim.

Having your home adequately insured against any dangers like fire, theft is the best way to protect your most expensive property. You have a good chance to reduce your homeowners insurance cost by shopping around, asking for discounts, read the fine prints and review your homeowners insurance policy from time to time.