Buying homeowners insurance in Alberta is a big and expensive decision. When you were buying your home, you might have spent several days looking at different homes. You visited houses you did not like. And you might have made mistakes. But you never gave up. Why? You knew you will find the right house.
Looking for the best insurance companies in Alberta is like looking for the right home. The insurance companies provide the best policies and they offer discounts. However, it is possible to make mistakes that most homeowners make when buying homeowners insurance.
Here are the mistakes to avoid when buying homeowners insurance in Alberta.
Select the Wrong Insurance Company
You are buying a homeowner’s insurance to protect your home. So, select an insurance company that is solid financially. Do not go for the cheapest insurance company. Do thorough research and shop around. Select a stable insurance company that has been in this business for several years. Make sure the insurance company has the best customer service. And find out how the company handles claims.
Choosing Actual Cash Value
Most homeowners buy an insurance policy that pays outs the actual cash value of their items or belongings. This is wrong because the value of their belongings depreciates over time. It is better to buy an insurance policy that replaces your belongings. For example, a TV that costs $2000 is hard to replace. However, the actual cash value of the TV after a few years is less than the original price. Do not select an actual cash value in your insurance policy, especially if you do not want to cover the difference with your own money.
Buying Less Coverage Because It is Cheaper
Less coverage is cheap. However, it can cost you a lot of money in the long run, especially when filing a claim. If you have less coverage, you will have to pay more with your own money. Do you want to get cheap homeowners insurance in Alberta? If yes, look for discounts, increase your deductible, and look for the right amount of coverage. And use a reputable insurance company.
Not Asking the Right Questions
Homeowners insurance policies are confusing. It is easy to make mistakes, especially if you do not ask the right questions. Ask your insurance company or broker several questions before buying an insurance policy. Ask the insurance company how it handles claims. Ask how you can get discounts. Ask if there are exclusions that you must know. And ask about their experience.
These are the mistakes to avoid when buying homeowners insurance in Alberta.