Home Insurance Decisions Best Left To The Experts

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As experienced Flower Mound real estate agents, we know that many homeowners are huge do-it-yourselfers – they like to do everything themselves. However, when it comes to certain home insurance decisions, you may want to bring in the experts. Otherwise, you could be in for a few unexpected and unpleasant surprises.

Here are the things you shouldn’t do yourself:

  • Set dwelling coverage
  • Determine your deductible
  • Protect your possessions
  • Establish liability limits
  • Cancel coverage once your mortgage is paid off

Homeowners tend to lowball the amount of dwelling coverage, however this is not recommended as the dwelling coverage protects not only your home, but possessions, living expenses in cases where a home cannot be lived in, and other structures (barns, garages, etc.) on the property. Licensed insurance agents can help you with dwelling coverage, as most are up-to-date on local building costs and can calculate how much it would cost to rebuild your home from the ground up.

Certainly, a high deductible will lower your annual premium – but it may also mean you don’t have coverage if it’s so high you cannot pay it. Your agent can help you come to the best decision.

You don’t need protection for your possessions, as they’re covered in your dwelling coverage, right? For the most part. However, collectibles, antiques, family heirlooms, jewelry, or other “high-dollar” items may have limits on payouts. It may be necessary to extend the limit on your coverage for certain items.

How much liability coverage do you need if someone gets hurt on your property? While standard policies typically feature personal liability protection and medical payments coverage, there are limits. If expenses go beyond the limits in your policy, you are responsible for the remaining costs. You may want to extend these limits, however your insurance agent can help you determine whether it’s a smart move.

Canceling your home insurance once your mortgage is paid off is just not smart. Your home could still catch fire, or be destroyed in a storm. Without home insurance, you could be left totally without a home unless you have the financial resources yourself to buy or rebuild.

Sure, it’s fun to DIY – but when it comes to home insurance, work with a professional who can help you make the right choices for your particular situation.

At Team Nelson, our Flower Mound realtors are specialists in buying and selling homes, however we know how difficult it can be to buy the right amount and type of home insurance. In the market to sell your home, or looking for that dream home in the Dallas metro area? Give us a call today!

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