Why Home Insurance Mistakes Matter
Your home is likely the largest investment you will ever make. Yet many homeowners across Missouri, Iowa, Kansas, and Illinois are surprised to discover, often after a disaster strikes, that their insurance policy does not fully protect them. The good news is that most coverage gaps are completely avoidable when you know what to look for.
At Brawner Insurance, we have been helping families protect their homes since 1992. Here are the seven most common home insurance mistakes we see, and how you can avoid them.
Underinsuring Your Home
Many homeowners insure their home for the market value rather than the rebuild cost. These two numbers can be very different. The market value includes the land, location, and current real estate trends, while the rebuild cost reflects what it would actually take to reconstruct your home from scratch.
With construction costs rising every year, a home that was adequately covered five years ago may now be significantly underinsured. Review your dwelling coverage annually and ensure it reflects current rebuild costs in your area.
Skipping Flood Insurance
Standard home insurance policies do not cover flood damage. This surprises many homeowners every year, especially in the Midwest where heavy spring rains and river flooding can affect properties miles away from any visible waterway.
Even if you are not in a designated flood zone, flooding can occur from heavy rainfall, blocked drains, or rapidly melting snow. A separate flood insurance policy through the National Flood Insurance Program or a private insurer is the only way to protect against this risk.
Underestimating Personal Property Value
Most homeowners have far more belongings than they realize. From electronics and furniture to clothing, jewelry, and kitchenware, it adds up quickly. Standard policies typically cover personal property at 50 to 70 percent of your dwelling coverage amount.
Take the time to do a home inventory. Walk through every room with your phone camera, document valuable items, and keep receipts for major purchases. Store this inventory in the cloud so you can access it after a loss.
Ignoring Liability Coverage
Liability coverage protects you if someone is injured on your property or if you accidentally damage someone else's property. The typical home policy includes only $100,000 in liability coverage, which can be quickly exhausted by even a minor lawsuit.
Consider increasing your liability coverage to at least $300,000 to $500,000. For added protection, an umbrella policy provides an extra layer of liability coverage that kicks in when your home and auto policies reach their limits.
Forgetting About High-Value Items
Standard policies have sub-limits on certain categories like jewelry, fine art, collectibles, firearms, and electronics. Your $20,000 wedding ring may only be covered up to $1,500 under a standard policy.
If you own valuable items, ask your agent about a personal articles floater or scheduled personal property endorsement. These add specific coverage for high-value items, often without a deductible.
Not Updating Your Policy After Renovations
Did you finish your basement? Add a new deck? Update your kitchen? Major home improvements increase your home's value, and your insurance needs to reflect that. Many homeowners forget to notify their insurer after renovations, leaving the new value uninsured.
Every time you make a significant improvement, contact your insurance agent to update your dwelling coverage. The same applies to adding a pool, trampoline, or hot tub, which may require additional liability coverage.
Choosing the Cheapest Policy Without Reading the Fine Print
While saving money on premiums is important, the cheapest policy is not always the best value. Cheap policies often come with high deductibles, low coverage limits, and exclusions that leave you exposed when you need coverage most.
Take the time to understand what you are buying. Ask your agent to explain exclusions, sub-limits, and the claims process. A slightly higher premium is well worth it if it means proper protection when disaster strikes.
How Brawner Insurance Can Help
At Brawner Insurance, our independent agents work with multiple top-rated insurance carriers to find you the right coverage at the best price. We take the time to understand your specific needs and help you avoid the costly mistakes outlined above.
Whether you are a first-time homeowner or have been in your home for decades, an annual policy review is one of the smartest things you can do. Our team will identify gaps in your coverage, look for ways to save you money, and ensure your most valuable asset is properly protected.
Ready to review your home insurance? Contact Brawner Insurance today for a free, no-obligation policy review. Call us at (660) 665-4500 or visit our office in Kirksville, Missouri to speak with one of our experienced local agents.