Oklahoma Insurance Professionals LLC Blog
Homeowners policies are meant to protect what is often your best investment.
Securing the right home insurance policy is a crucial step for your financial protection.
However, it can be a difficult task with numerous items to consider and potential pitfalls to avoid.
Making mistakes can prove costly. Ultimately, you want the best protection while keep the cost of homeowners insurance down.
To help guide homeowners in Oklahoma City, we've identified five common mistakes to be aware of when it comes to home insurance.
By understanding and avoiding these pitfalls, homeowners can make informed decisions, protect their properties, and gain peace of mind and protection against unforeseen circumstances.
Let's examine some of the most common mistakes.
Mistake 1: Not Shopping Around for Rates
When it comes to Oklahoma City home insurance, many homeowners make common mistakes that can cost them in the long run. One of the most common mistakes is not shopping around for rates. It's important to gather quotes from multiple insurance companies to ensure you are getting the best insurance coverage at the most competitive price.
By not comparing rates, homeowners may end up paying higher premiums than necessary or missing out on potential discounts. It's always a good idea to research different insurance carriers, speak with independent insurance agents, and ask for recommendations from friends and neighbors.
Shopping around for rates can help you find the right insurance policy that meets your needs while also keeping the cost of homeowners insurance manageable. One of the advantages of working with an independent insurance agency lies in receiving multiple quotes from a variety of insurance carriers (a.k.a., insurance companies).
Mistake 2: Not Understanding Policy Types and Insurance Coverage Limits
When it comes to Oklahoma City home insurance, one of the most common mistakes that homeowners make is not fully understanding the different types of coverage policies available and the coverage limits of their chosen policy.
There are various types of insurance policies, including standard home insurance policies, which provide coverage for property damage, liability, and personal property. However, there are also additional coverage options, such as flood insurance or business interruption insurance, that may be necessary depending on the specific risks associated with your home. Understanding these policy types and coverage limits is crucial as it determines the level of protection you will have in the event of a claim.
Failing to grasp these aspects could result in insufficient coverage, leaving homeowners financially vulnerable in the face of unexpected damages or incidents. Therefore, it is essential for homeowners to carefully review their policy, consult with their insurance agent, and consider their specific needs when choosing the right coverage for their Oklahoma City home.
Mistake 3: Failing to Update a Policy or Make Necessary Changes
One common mistake homeowners make with their Oklahoma City home insurance is failing to update their policy or make necessary changes. Life is constantly changing, and so are your insurance needs. Whether you've renovated your home, added a swimming pool, or purchased expensive jewelry, it's crucial to update your policy to ensure you have the proper coverage in case of a claim.
Failing to do so can leave you at risk of being underinsured or even denied coverage when you need it most. Additionally, failing to make necessary changes, such as updating your contact information or adding additional security measures, can also impact your coverage and premiums.
It's important to regularly review your policy with your insurance agent to make sure it accurately reflects your current circumstances and provides adequate protection for your home and belongings. Don't make the mistake of neglecting to update your Oklahoma City home insurance policy, as it could lead to financial hardships in the event of a loss.
Mistake 4: Not Understanding the Difference Between an Independent Agent and a Captive Agent
When it comes to purchasing Oklahoma City home insurance, many people make the mistake of not understanding the difference between an independent agent and a captive agent. Let's break it down.
An independent agent is an insurance professional who works with multiple insurance carriers (or homeowners insurance companies). They are not tied to any specific company, allowing them to offer a wider range of insurance products and coverage options to their clients. Independent agents can compare quotes from different carriers and tailor the insurance policy to meet specific needs. They can provide unbiased advice and guidance, ensuring that clients get the best coverage at the most competitive rates.
On the other hand, captive agents work exclusively for one insurance carrier. They can only offer insurance products from that particular company. While they have a deep understanding of the products and policies of their parent company, they may have limitations when it comes to providing options and alternatives to their clients.
The benefits of working with an independent agent include access to a wide variety of insurance carriers, personalized service, and the ability to compare quotes and coverage options. Independent agents can guide homeowners through the process of choosing the right coverage for their specific needs.
Captive agents, on the other hand, have a strong understanding of their parent company's products and policies. They can provide in-depth knowledge and specialized advice about their insurance carrier's offerings. Captive agents may have limited options when it comes to coverage and carriers, potentially missing out on better deals and policies from other companies.
Mistake 5: Filing Minor Insurance Claims
When it comes to homeowners insurance in Oklahoma City, one common mistake homeowners make is filing a minor claim for damages. While it may seem tempting to file a claim for every little scratch or dent, doing so can have potential consequences that homeowners need to be aware of.
One of the main consequences of filing a minor claim is the potential increase in insurance premiums. Insurance companies take into account your claims history when determining your insurance premiums. Filing multiple minor claims can label you as a high-risk customer, leading to higher premiums in the future.
Additionally, filing a minor claim can cause delays in the claims process. Insurance adjusters and agents prioritize claims based on severity. If a minor claim is filed without effective communication and proper documentation of the damage, it may get pushed to the bottom of the queue. This can result in longer wait times and delays in receiving compensation for your damages.
To avoid these consequences, homeowners should carefully assess the extent of the damage before filing a claim. If the damage is minor and can be easily fixed without incurring significant costs, it may be best to handle the repairs out-of-pocket rather than involving your insurance company.
Furthermore, effective communication is key when describing the damage to your insurance agent. Be clear and concise in your explanation, providing detailed documentation and photographs whenever possible. This will help ensure a smoother claims process and minimize delays.
By avoiding the mistake of filing a minor claim without considering the potential consequences and by effectively communicating with your insurance company, homeowners in Oklahoma City can navigate through the claims process more efficiently and successfully.
Go with the Pros
At Oklahoma Insurance Pros, we take pride in helping Oklahoma City homeowners protect their most valuable asset – their homes. As an independent insurance agency, we have the flexibility to work with multiple insurance carriers to find the best coverage options for our clients at the best insurance rates.
One common mistake homeowners make is not fully understanding their insurance policy. We make it a priority to educate our clients about their options and help them choose a policy that suits their unique needs. From determining the appropriate coverage limits to explaining the types of coverage available, our team of experienced agents are here to guide homeowners through the process.
Another mistake homeowners often overlook is not considering additional coverage for their personal property or liability coverage. We offer a range of insurance products that can be added to a standard home insurance policy to provide extra protection for personal belongings and cover legal expenses in the event of a lawsuit.
We also help with renters insurance and auto insurance policies. We have solutions for business owners too, provide business insurance coverage, e.g., business interruption insurance.
Furthermore, we understand the importance of providing exceptional customer service. Our team is always available to assist homeowners with any questions or concerns they may have during the claims process or when reviewing their current policy. We strive to make the insurance experience as seamless as possible for our clients.
You can count on an independent insurance agent with proper insurance experience to help you there.
Don't make the common mistakes many homeowners make when it comes to insurance. Go with the Pros at Oklahoma Insurance Pros and let us help you find the right homeowners insurance policy and the right coverage for your Oklahoma City home.