Home Insurance Mistakes New Homeowners Make

Buying your first home is exciting and overwhelming. In the rush to close, many new homeowners make insurance mistakes that leave them underprotected. Here are the most common ones David sees, and how to avoid them.

Mistake 1: Choosing the Cheapest Policy Without Reading the Exclusions

The lowest premium doesn't mean the best value. Cheap policies often have higher deductibles, lower coverage limits, and exclusions that can cost you thousands when you file a claim. David compares the actual coverage, not just the price, across 30+ carriers.

Mistake 2: Not Updating Coverage After Renovations

If you remodel your kitchen, finish your basement, or add a deck, your home's replacement cost increases. If your policy doesn't reflect those changes, you'll be underinsured. David reviews your coverage whenever you make significant improvements.

Mistake 3: Skipping Flood Insurance

A burst pipe or failed plumbing inside your home is generally covered under standard homeowners insurance as sudden and accidental water discharge. Flood damage is different. Rising water from storms, overflowing rivers, and storm surge are not covered by a standard policy. You need separate flood insurance for those perils. More than 20% of flood claims come from properties outside designated flood zones. David quotes flood coverage for every homeowner he works with.

Mistake 4: Underinsuring Personal Property

Most people underestimate the total value of their belongings. Walk through your home and add up electronics, furniture, clothing, and appliances. It's likely more than you think. David helps you calculate the right personal property limit.

Mistake 5: Ignoring Liability Coverage

If a guest slips on your icy walkway and sues, your homeowner's liability coverage responds. But the default limit is often too low for families with significant assets. David typically recommends at least $300,000 in liability coverage, with an umbrella policy for additional protection.

The right insurance isn't just about protecting your house. It's about protecting your financial future. A 15-minute conversation with David can identify gaps you didn't know you had. Call (800) 555-0300.