How to Prevent Homeowners Insurance Problems

When you buy your homeowners insurance policy, you rarely think there can actually be problems with the insurance itself. You want to foresee issues before they actually become issues. There are some steps you can take to actually prevent homeowners insurance problems.

Instructions

1. Buy enough coverage to rebuild your home if the worst were to happen. Talk to your agent and local contractors to determine how much it would cost to duplicate the size and style of the home you are currently in. That may be double the price you paid for the house. Better to pay a little more in premiums that a lot more for a new house.

2. Know that some carriers add a wind or hurricane damage deductible on top of the standard deductible to policies for houses in areas prone to such damage. Read the policy being offered and understand all the terms and conditions. This could save you frustration in the future if your roof or siding is blown off.

3. Ask the local fire department to conduct a fire safety inspection of your home. Finding and fixing potential fire hazards could save not just your life but also help you avoid a fight with the insurance company if there is fire damage resulting from your negligence.

4. Clean snow from roofs to prevent ice dams from forming. Keep the gutters clean so snow, ice or rain don't build up and cause leaks.

5. Think twice about calling your agent with a question about coverage for minor damage. The company may hold it against you. And if you do file a claim on more serious damage in the next year or two, it may flag you as a high risk and drop you. Always read the policy thoroughly before signing and before calling the agent after damage.

6. Buy additional coverage for luxury items like furs, jewelry and artwork or home-based business equipment like computers and tools. Your regular policy may not cover the cost to replace these items in the event of loss.

Tips & Warnings

• If you have some damage and think you may file a claim, contact a contractor first for an estimate. If it doesn't exceed your deductible, don't report the damage to your agent.