If you own a home, you need a home insurance policy to protect it. From the structure itself to the valuables you keep inside, comprehensive coverage will give you the peace of mind you deserve. 

Unfortunately, many people go down the wrong path when buying home insurance. So, rather than get the protection they want and need, they come up short for one reason or the next. 

A sound understanding of the most common home insurance mistakes can help you avoid trouble. Here are three mistakes that continually bog down home owners. 

1. A high deductible

You’ll have several deductible options to choose from, so carefully compare them with an eye toward the impact on your monthly premium.

The higher your deductible, the lower your monthly premium. This is what draws many people to a high deductible policy. The problem comes into play when making a claim. It’s at that point that you realize you have to spend more money out of pocket before your home insurance coverage kicks in. 

For many people, the lowest deductible or highest deductible isn’t the right choice. They find their sweet spot somewhere in between. 

2. Insuring your home for market value, not replacement value

The market value of your home and the replacement value of your home are two entirely different numbers. 

Don’t focus on the market value, or the amount that someone would pay for your home. Instead, focus on the replacement value. This is the actual amount it would take to replace your home. You want your policy to cover the replacement value, as this ensures that you can rebuild if worst comes to worst. 

3. Shopping by price alone

Everyone wants to save money on home insurance, and that’s okay. You should look for ways to save, such as by comparing quotes and asking about discounts. The situation you want to avoid is shopping by price alone. 

There are many other details to consider, such as the coverage you’re getting in exchange for your money, customer service, and company ratings. If you overlook these important details, you may find yourself disappointed at some point in the future. 

Final thoughts

Unfortunately, these aren’t the only home insurance mistakes lurking. There are many others that could come to light when buying a policy or relying on it to protect your home.

If you have questions or concerns about your coverage, take a step back to assess the industry and your policy. And of course, you should always feel comfortable talking to your agent about your wants and needs.

Have you made any of these home insurance mistakes? What others would you add to the three above?