You have finally settled into the custom home of your dreams. The paperwork is signed, the furniture moved and the sprinkler is gently spraying your lush front yard. Hold up. Don’t relax yet. Before you get comfortable in your new Connecticut home, keep in mind some common mistakes homeowners make when it comes to insurance.
Every year insurance claims get denied for a variety of reasons including no documentation, a failure to meet the deductible and not having the right coverage. From fire, hail and theft, we want you to be protected from the hazards that could turn your dream home into an eyesore.
Document Everything: Just signing a homeowner’s insurance policy does not mean a check is on the way if an accident occurs. Insurance companies will send their own team of adjusters to determine the extent of the damage. For your own benefit it is imperative that you document everything. This means doing a full inventory of your valuable belongings (furniture, TV’s, artwork) and documenting any accidents. If lighting strikes a tree and a branch comes through your roof, take as any pictures as possible so you have evidence. Also, the insurance company will probably have forms for you to fill out. Do not neglect these. If you do not return the proper paperwork you will most likely be denied a claim.
Are you Covered: Insurance isn’t cheap and many homeowners will look for areas to cut costs and lower their premiums. However, when you make these decisions you need to understand exactly what coverage you are waiving. If you have passed on a supplemental coverage plan and then experience an accident that happens to include items that would have been covered under that plan, there is no chance of collecting. Sit down with your local insurance agent and make sure you are covered for matters most.
The Deductible: One of the main reasons homeowner’s are denied a claim is because they have not met their deductible yet. Every insurance policy comes with a deductible, an agreed upon amount that the insured has to pay before he can start to collect. If you have not met your deductible an insurance company will not process your claim. Know the deductible on your home and try to pay it as soon as possible.