As a Cohasset MA area real estate agent I have seen plenty of issues that arise from mistakes in bad, or poor, purchases in homeowners insurance. All too often people focus on price and NOT coverage. Having ample coverage is integral when it comes to needing to file a claim. And there is nothing worse than finding out you have limited coverage or, worse, none at all.
Below are the 5 insurance mistakes that I see Cohasset area homeowners make.
It is always a good use of time to review what your various insurance coverage are and how that relates to today’s economic environment. For example, what is your replacement cost coverage? Meaning what happens if your home burns to the ground. Do you have enough coverage to rebuild your home? Most policies have a cap. And, as is well noted, the cost to build today is much higher than it has been in years. So ask your insurance agent, do you have enough coverage. You do not what to learn the hard way.
Setting Your Deductible Too High
This is one I am seeing more and more of in the market. People tell me they never have to file a claim, so it makes more sense to have a higher deductible and lower cost of insurance. And this makes sense until you need to file a claim. Then you are out of pocket, and usually, more than you anticipated. Insurance is one of those things you hope you never need to use. But when you do use it by filing a claim, it is good stuff. And you’ll be glad you had it.
Not Combining for Discounts
This is a real no-brainer. So many insurance carriers would love to have multiple relationships with you. They’d love to have your homeowners insurance, and they often offer a deal of some kind if you blend in your auto insurance, boat insurance, and umbrella policy, among others. This is where you can save some real money. And why you need a competent local insurance agent, they’ll understand you, your family, and your needs.
Lack of Customization
Living down here on the South Shore can have its own unique insurance coverage requirements, from high winds to flood maps to antique homes, we have all sorts of crazy needs. And usually, there is a carrier for almost every need. And needs can be as unique as the people and homes being insured. A good local insurance agent probably has the right solutions for you without it costing you a fortune.
Not Working with a Local Insurance Agent
As I have noted above, working with a local insurance agent is one of the biggest insurance mistakes I have seen in all my years living on the South Shore. Understanding our local flood maps is truly an art form. Matching insurance carriers to those maps is another skill. And knowing which homes have which quirks, and pairing all that together to get you more than ample coverage for a fair price is something you will not find on a computer screen.
Here at Michelle Larnard Real Estate, we are a locally owned firm with agents who live and work in the communities we serve. Like your locally-owned insurance company, we too are fans and promoters of shop local. When you shop locally, everyone benefits. And you can see above how your local insurance agent can help you with the best coverages, and so can your local real estate agent help you with navigating the local real estate market.
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