Homeowners insurance is essential for protecting your most valuable asset—your home. But simply having a policy isn’t enough. Many homeowners make costly mistakes when purchasing or managing their coverage. At Eugene C. Yates Insurance Agency, we’ve helped Sacramento residents avoid these pitfalls for over 75 years. Here are four common home insurance mistakes you should avoid:
1. Underinsuring Your Home
Many homeowners make the mistake of insuring their home based on its market value instead of the cost to rebuild. The market value includes land, location, and demand—but your insurance should cover reconstruction costs, which can be significantly higher, especially with rising material and labor prices.
Avoid it: Work with an experienced agent to calculate accurate replacement costs and update your coverage regularly.
2. Neglecting to Update Your Policy After Renovations
If you’ve made home improvements like a kitchen remodel, room addition, or even a new roof, your current policy may not reflect your home’s increased value.
Avoid it: Always inform your insurance agent about renovations so your policy can be updated to match your home’s new worth.
3. Ignoring Coverage Gaps
Standard policies don’t always cover everything. Floods, earthquakes, and sewer backups typically require separate endorsements or policies. Many homeowners mistakenly assume their standard policy protects against all disasters.
Avoid it: Review your policy carefully and talk with your agent about add-ons or supplemental coverage options for risks specific to your location.
4. Choosing the Cheapest Policy Over the Best Coverage
While saving money is important, going for the lowest premium can leave you with insufficient coverage and high out-of-pocket costs after a claim.
Avoid it: Focus on getting the best value, not just the lowest price. A reputable local agent can help you compare top-rated carriers and find a policy that balances cost with comprehensive protection.
Final Thoughts
Your home is too valuable to leave unprotected by the wrong insurance policy. Avoiding these common mistakes can save you time, money, and stress down the road. If you’re unsure about your current coverage or need a new quote, contact Eugene C. Yates Insurance Agency—your trusted Sacramento insurance experts since 1946.
📞 Call us today for a free home insurance review or quote.