5 Common Mistakes to Avoid When Buying Home Insurance

Mistake #1: Choosing the Cheapest Policy Only

It’s tempting to go for the lowest premium, especially when you’re trying to cut costs. However,
selecting the cheapest home insurance policy may mean you’re skipping out on essential coverage
like fire, theft, or water damage protection. These exclusions can end up costing you far more in the
long run.

Tip:

  • Instead of just comparing prices, compare what’s included in the policy. A slightly more
    expensive policy could save you thousands in the event of a disaster.

Mistake #2: Underestimating the Value of Your Belongings

Most homeowners undervalue their possessions when buying insurance. From furniture and
electronics to clothing and kitchenware, your home holds more value than you might realize. Not
declaring their full worth can mean lower premiumsbut also a painful payout shortfall during a claim.

Tip:

  • Make a detailed inventory of your homes contents with photos, serial numbers, and receipts.
    Update it regularly and store it in the cloud.

Mistake #3: Ignoring Water Damage Coverage

Standard home insurance often excludes sewer backup or overland water damage. Yet, water-related incidents are among the most frequent and expensive claims in Canada. A flood, even a small one, can damage your basement, ruin furniture, and cause mold issues.

Tip:

Ask your insurance provider about water damage endorsements. Theyre typically affordable
and could be lifesavers during seasonal rain or thawing snow.

Mistake #4: Not Understanding the Deductible

A deductible is the amount you pay out of pocket before your insurance kicks in. Many homeowners
accept high deductibles to get lower monthly premiums but regret it when faced with minor repair
costs that insurance wont cover.

Tip:

Choose a deductible you can realistically afford in case of emergency. Balance savings on
premiums with manageable financial risk.

Mistake #5: Not Asking Questions

Insurance policies can be filled with jargon and exclusions. Assuming youre covered without reading
the fine printor asking for clarificationcan result in denied claims.

Tip:

If anything seems unclear, talk to your insurance advisor. Ask about exclusions, claim limits,
and the claims process.

Bonus Tip: Not Updating Your Policy After Renovations

If you renovate your homeinstalling a new kitchen, bathroom, or roofyour homes value may change.
Failing to update your policy means your coverage might not reflect the real replacement cost of
your home.

Tips:

  • Always notify your insurance company after major upgrades or purchases.

Final Thoughts

Home insurance is your financial shield against unexpected losses. But having the wrong coverageor not enough of itcan leave you vulnerable when you need help the most. Avoid these common pitfalls and make informed decisions when protecting your most valuable asset: your home.
Need expert advice? Our licensed insurance agents are here to guide you. Get a free consultation and quote today.