5 Greensboro Home Insurance Mistakes That Will Cost You

Most Greensboro homeowners understand the need for adequate homeowners insurance but may be unsure about exactly what adequate homeowners insurance entails. When deciding on the ideal Greensboro home insurance policy to fit your personal needs, it's important to avoid making any costly mistakes in the process. Here are some hints that may help.

• Obtaining homeowners insurance can be a confusing topic. It's best to go into the process with the assistance of a professional insurance person. Consulting an insurance broker who has access to multiple insurance company's products should provide the best results. Short of this, before deciding on the purchase of a particular policy, take the time to compare multiple offers from several different insurers.
• Experts agree that one of the most common mistakes homeowners make is under-insuring their homes. The amount of insurance your mortgage company requires you to carry is only the amount that covers their financial exposure. Your house may be worth significantly more than the amount owed to your mortgage lender and your insurance coverage should reflect the amount it would cost to rebuild your home should it be totally destroyed.
• It's a mistake to believe that your standard homeowner's insurance coverage protects you against water damage from torrential rains or flooding. Flood insurance is a special policy that must be obtained through the National Flood Insurance Program.
• It's a mistake not to consider replacement value for your home and personal possessions rather than actual current cash value. What you paid for your home, for example, may be considerably less than it would cost to replace it should it be totally destroyed by fire or a tornado. Your old couch or computer may be worth next to nothing in actual cash value, but if these are destroyed you'll still have to replace them and will be faced with current prices. Replacement value coverage will provide for this.
• Most insurance policies have limits on what they'll pay toward expensive items such as artwork, gun or coin collections, furs, jewelry or other collectibles. Additional coverage can be taken out to protect from losses for these items and it's a mistake to assume everything in your home is covered for its full value unless this type of additional coverage is obtained.

It's a mistake to believe you know what your Greensboro home insurance policy covers if you haven't read and understood it. Consult your agent with any questions.