Your home insurance is a bit like a parachute: as long as everything is going well, you don’t think about it. But when things get complicated, it’s better to have it properly packed. Here are five common—and often costly—mistakes that we still see too often.
1. Underinsuring the value of your home
Market value and replacement cost are not the same thing. Underestimating this amount can leave you with insufficient compensation after a loss. As a result, you could end up paying the difference out of your own pocket. A nasty surprise is guaranteed, and not the kind we like.
2. Forgetting to report renovations or improvements
New kitchen, renovated basement, addition, high-end flooring… If these improvements aren’t reported, they won’t be fully covered. In the event of a claim, the insurer will base its calculation on the old value. Translation: you paid for something nice, but you’re not adequately insured.
3. Neglecting water damage protection
Water damage is among the most frequent and costly types of damage. Sewer backup, foundation leaks, roof leaks… This protection is not always automatically included. Believing that “water is always covered” is a classic mistake… and a trap.
4. Thinking that everything in the house is automatically insured
Valuables, jewelry, artwork, collections, specialized equipment: many items have coverage limits. Without specific coverage, compensation may be much lower than the actual value. In short, your ring may be worth $5,000, but only be insured for $2,000.
5. Never rereading your policy… year after year
Life changes: moving, working from home, renting out part of your home, adding a pool or wood stove. If your policy doesn’t reflect your current situation, you could find yourself underinsured—or not covered at all. Insurance policies need to be reviewed, and not just when they’re automatically renewed.
Home insurance is not a “set it and forget it” product. Good coverage is based on up-to-date information, appropriate protections, and a true understanding of what you have—and what you don’t have.
A simple tip: it’s better to ask our brokers too many questions than not enough. It costs a lot less than a poorly covered claim. 1-800-360-6880
