Home may be where the heart is, but home can be expensive if poor decisions are made where homeowner’s coverage is concerned. While not being covered can be costly, there are things people do that can make them pay more than a neighbor pays. With those things in mind, customers can read full info here on five costly insurance mistakes.
Accepting What’s Offered
People shop around when buying cars, houses and clothing, but many keep the same homeowner’s policy for years at a time. If comparison shopping never happens, there’s a good chance that a customer is paying more than they need to for Home Insurance in Tulsa OK.
Forgetting About Upgrades
Installing new lighting fixtures, upgrading a kitchen and making other home improvements can make a homeowner happy, but it can be costly if the insurance policy doesn’t receive a matching upgrade. Improvements can improve the livability of a home, as well as its value-;and replacing such items can be expensive if there’s a total loss. Certain features, such as trampolines and swimming pools, can leave a homeowner more vulnerable to litigation and they can increase a monthly premium.
Having Bad Credit
Many think that credit score is irrelevant when buying homeowner’s insurance, but it really does matter. In all states except California, a customer’s credit score can increase the price paid for homeowner’s insurance. There’s a link between low credit score and claims frequency; someone with a low score not only lets bills slide, but home maintenance as well-;which can lead to costly claims.
Low Deductible
No one wants to pay a huge deductible, but setting it too low can end up being more expensive in the end. By setting a deductible on the low end, it encourages some homeowners to make more claims. One claim can cause a 9% increase in rates, with the number being higher in other states. If a deductible is high, it keeps homeowners from making frivolous claims.
Not Taking Advantage of Discounts
A good thing about Home Insurance in Tulsa OK is the number of available discounts. For example, a person can get a discount for bundling with other insurance policies, or for being retired. Even living in a deed-restricted community can result in a discount. While most ask upfront for discounts, they fail to look for new ones when those discounts expire. Knowing expiration dates and asking for new discounts can help homeowners save each month.
