8 of the most common mistakes in home insurance
We've said it before, and we'll say it again: insurance can be confusing. If it were simple, no one would need an insurance broker or be confused about what they're covered for when it comes time to make a claim. It's not just you—many homeowners get confused too. Insurance policies are easy to read because they have to clearly state exactly what is and isn't covered. They include specific limits, conditions, and terms, which is why things can get very confusing very quickly. That's why insurance brokers seem to speak "a different language" when working with you on your coverage. They have years of experience understanding how policies are structured.
It's perfectly understandable that mistakes are inevitable when it comes to understanding how to file home insurance claims. In this blog, Panda7 will address some of the most common home insurance claims errors.
Do not read your font
Look, we're all guilty of it. Nobody likes reading their insurance policy or even reviewing their coverage less than once a year. You might hesitate because insurance is complicated, and policies aren't always the easiest to read. Luckily, that's what insurance brokers are for! If you're having trouble understanding what the coverages in your policy mean, or if you haven't reviewed your policy recently, you can always call your friendly Panda7 insurance broker to help you with a review.
Insurance coverage can be complex, and it's common for homeowners to assume they're covered for something when they're not. If you're unsure where to begin or feel confused, don't hesitate to contact the brokers at Panda7. Simply failing to read your policy or understand what you read can lead to serious problems during the claims process.
Do not document your personal belongings
If you need to file a claim, the process could go smoothly if you had an inventory to provide. If you're forced to work from memory, you're unlikely to be able to accurately represent everything you owned and will miss some items, ultimately leaving them out of your claim. The big things will probably come to mind, but what about that expensive cocktail-making kit you misplaced? The small items you overlook will have a higher cumulative value than you might expect, so filing a claim without a home inventory could force you to lose—a lot. The bottom line? A home inventory doesn't take much time to complete and can save you money if you ever find yourself in a situation where you need to file a claim.
Immediate cleaning after a loss
It can be tempting to try to clean up immediately after a loss so you and your family can get back to life as it was before. This can be a huge mistake, especially since it doesn't give your insurance company a chance to fully document the damage. Avoid throwing away receipts or damaged items, as they can serve as evidence of your loss. If you file a claim for a damaged part of your home or an item, keep it until you have enough photos and documentation for repair or replacement estimates.
Insufficient coverage
Even before a loss occurs, there's a huge (but common!) mistake many homeowners make: not having enough coverage. Whether your limits are too restrictive or you assume something isn't covered, you're exposing your property and assets to potential losses. Just because something happened "accidentally" doesn't mean it's covered. For example, not all cases of water damage are covered, such as leaks from your roof due to flooding that seep into your basement windows.
This is where you need to review your policy regularly – and have a broker on hand when you do. Brokers can identify potential exposures thanks to their expertise and experience in the field and can advise you on potential hedging options to reduce your risk.
Waiting too long after a loss
Not everything is cured with time. Problems rarely resolve themselves over time, so it's crucial to file a claim as soon as an issue arises to begin repairs. Some insurance companies may even have a limited timeframe within which you can submit a claim—usually up to a year, but this can vary depending on where you live and your carrier. That said, waiting benefits no one. File your claim as soon as possible.
Making too many complaints
When calculating your rates, your claims will be taken into account. One or two claims might easily slip under the radar, but if your home (or even auto) insurance provider has discovered that you're filing claims for every little bit of damage that's occurred in your home, you might consider trying to resolve even the smallest problem yourself. Sometimes, it's not worth filing a claim if your deductible is more than enough to repair or replace what's been lost.
Furthermore, you can reduce your chances of having to make a claim simply by being a good landlord. Exercising due diligence and addressing maintenance and minor repairs before they escalate into more serious problems is a good start.
Do not describe your loss precisely.
We understand. Filing a claim can be stressful, especially if you've recently experienced a significant loss. Miscommunication can occur when you're not fully informed. When you need to file a claim, it's important to break down the incident into steps and clearly describe what was lost. If you don't accurately report the loss, your claim could be significantly delayed.
In summary, the claims process can go much more smoothly if you keep a cool head, review your policy regularly, take good care of your home, and use your broker as a resource if you're ever confused about your coverage. We're here to help, through thick and thin.