Want to save money on home insurance?
The following are three insurance mistakes consumers should avoid according to the Insurance Information Institute, along with practical suggestions for better ways to save:
1. Insuring a home for anything less than complete replacement costs of rebuilding the home is a mistake many homeowners make. The real estate market is suffering just like many other industries in this country, and some people may want to decrease the amount of money spent on their home insurance. However, the insurance is not meant to cover the sales price of your home but rather to cover you in the event of a disaster and your home and belongings would need to be totally replaced. Raise your deductible; just a slight increase from $500 to $1,000 could save up to 25 percent on your annual premium.
2. Dropping flood insurance is a mistake many homeowners tend to make because they think a flood could never affect them. Rising water is not covered in most homeowners and renters insurance policies, but is available through the National Flood Insurance Program (NFIP) in addition to some private insurance companies. Many homeowners opt-out of this insurance, but according to I.I.I. website, 25 percent of all flood losses occur in low-risk areas. Instead, check with the NFIP website to find out in which flood zone your home is located. If you already live in an area prone to flooding, check the mitigation efforts and assess your risks to consider purchasing flood insurance.
3. Many people do not consider renter’s insurance, but neglecting to purchase it could result in becoming underinsured. A renter’s insurance policy covers your possessions and additional living expenses in case of a disaster and moving out is inevitable. It also helps to protect you in case someone is injured in your house and decides to sue. For more helpful information on insurance, visit the I.I.I. website.
If you are in the market for a new home insurance policy, we encourage you to consider Florida Peninsula Insurance Company as your preferred Florida home insurance company. Not only do we provide some of the most comprehensive homeowners insurance policies that protect you and your family when you need it most, we also offer great insurance rates to home and condo owners as well as those living in apartments with our renters insurance. You can’t go wrong with Florida Peninsula. You’ll be impressed with our fast, fair and friendly customer service and claims processing, all at great rates. We invite you to experience the Florida Peninsula difference.