If you have just purchased a new home in Cloquet, MN, you need to properly insure it. In most instances, your mortgage lender requires you to have a certain level of homeowner’s insurance. There is a litany of different options available to you on the home insurance market, and you are bound to make mistakes as a first-time shopper.
We want to help you shop here at Brittany Olson Insurance Agency LLC, so here are three of the most common mistakes made by those shopping for homeowner’s insurance to avoid.
Three Mistakes To Avoid
1. Getting Lured In By the Lowest Price
No one would fault you for going with the lowest price when shopping for insurance for your Cloquet, MN home. Beware that it may be the cheapest for a reason. To put it simply, things are cheap because they are cheap. Make sure you read the contract to see what exactly is covered in the policy. This doesn’t mean you should automatically take the most expensive policy either.
2. Underinsuring the Replacement Value
A common mistake people make is insuring their home to the value of the home on the mortgage. This is a mistake because the home’s value will increase over time. If you have an issue down the road and your home has gone up in value by 20%, it won’t be properly covered. Try to account for future gains in value when calculating the replacement value on your homeowner’s policy.
3. Insure Yourself Against All Risks
Even if you don’t live in California, you could be at risk of damage from an earthquake. You’d also be surprised how many areas get hail or wind damage that aren’t in high-risk areas. Don’t skimp on covering these things to keep your premiums low.
Consult With Us
At Brittany Olson Insurance Agency LLC, we help our customers insure their homes properly at a great price. Contact us today if you have questions about your homeowner’s policy and what it should include.