Home Insurance Shopping Mistakes
Shopping for homeowners insurance shouldn’t feel overwhelming—but for many people, it does. With so many coverage options, endorsements, exclusions, and price points, it’s easy to make choices that leave you underinsured or overpaying. The good news? Most of the common pitfalls can be avoided with just a little guidance.
Here are the most frequent mistakes homeowners make when comparing insurance policies—and how to avoid them.
1. Focusing Only on Price Instead of Coverage
It’s natural to want the lowest premium. But the cheapest quote often comes with the biggest gaps.
Ultra-low premiums frequently mean:
Lower dwelling coverage limits
Higher deductibles
Fewer included coverages
Missing important endorsements
A policy that costs a bit more each month may save you thousands after a claim. Coverage—not price—should drive your decision.
2. Choosing the Wrong Dwelling Coverage Amount
Many homeowners assume their coverage should equal their home’s market value. In reality, your dwelling coverage should match the cost to rebuild your home, not buy it.
Replacement cost is impacted by:
Local construction costs
Material quality
Square footage
Architectural style
Underinsuring your home is one of the most expensive mistakes you can make.
3. Forgetting About Personal Property Coverage
Not all personal property coverage is created equal. Some policies reimburse you for items at Actual Cash Value (ACV)—meaning depreciation is deducted. Others offer Replacement Cost, which allows you to replace damaged items at today’s prices.
Choosing the wrong type could cost you thousands after a loss.
4. Overlooking Important Endorsements
Standard policies cover a lot—but not everything. Many homeowners assume they’re protected from risks that require optional endorsements, such as:
Water/sewer backup
Service line damage
Identity theft
Valuable personal property (jewelry, collectibles, firearms)
Equipment breakdown
Adding endorsements typically costs very little compared to what they protect.
5. Not Reviewing Liability Limits
Liability coverage is one of the least expensive parts of your policy—and one of the most important. It protects you financially if someone is injured on your property or if you accidentally cause damage to someone else.
Many homeowners stick with the bare minimum, but increasing your liability limit is often only a few dollars more per month.
6. Ignoring Deductible Options
Your deductible affects your premium and your out-of-pocket costs at claim time. A deductible that’s too high can make a claim unaffordable; one that’s too low might unnecessarily inflate your premium.
Choosing the right balance is key.
7. Not Understanding Exclusions
Every policy includes exclusions, and not knowing what they are can lead to unpleasant surprises. Common exclusions include:
Flooding
Earth movement
Wear and tear
Pest damage
Maintenance-related issues
Understanding what’s not covered is just as important as knowing what is.
8. Forgetting to Reevaluate Coverage Over Time
Your home changes—and so should your policy. Renovations, new valuables, or lifestyle changes can all affect the coverage you need.
A yearly review ensures your policy still fits your home and your life.
9. Not Working With a Licensed Advisor
Online quotes can be convenient, but they don’t replace the guidance of a licensed agent who can help you identify risks, understand coverages, and compare policies beyond just price.
A knowledgeable advisor can protect you from coverage gaps you may not even realize exist.
Final Thoughts
Homeowners insurance isn’t just a box to check—it’s the protection that stands between you and a financially devastating loss. Avoiding common mistakes can help ensure your home, your belongings, and your family are properly protected.
If you’d like help reviewing your current policy or comparing options, our team at Cameron Insurance Agency is here to help you make confident, informed decisions.