When disaster strikes, it’s too late to change your insurance policy, so take a minute now to look it over. Will it cover everything you need it to? Many people make the following mistakes when buying their insurance in Hobbs, New Mexico. By avoiding these errors, you could save your family a lot of money.
Not Realizing Deductibles Are Subject to Change
When you sign up for homeowner’s insurance, your policy has a flat deductible rate, but did you know that changes when you’re hit by a natural disaster such as a tornado or flood? Your deductible could rise to as much as 10 to 15 percent of your coverage amount. Always ask your insurance agent whether your policy has varying rates. Buying one with a flat-rate may cost more, but it will be worth it in the end.
Not Insuring Your Home for the Correct Amount
Many homeowners only insure their home for the price of the mortgage or the current value of the property. After a natural disaster hits, it can cost much more to rebuild. To avoid this mistake, calculate how much it would cost in supplies plus labor to recreate your home. Remember that the cost of both tend to go up after a catastrophe due to low supply and high demand.
Checking your insurance policy before misfortune hits is the smart thing to do. When you get insurance in Hobbs, New Mexico or your own home state, be sure to sidestep the blunders above to be sure you’re ready for anything.