4 Common Mistakes When Buying Insurance
Mistakes can be costly, and that’s especially true when it comes to buying home and car insurance. People make common missteps when purchasing insurance policies that can affect their coverage and disqualify them from making a claim. When choosing an auto or home insurance policy, avoid these pitfalls.
1. Failing to Add Additional Drivers
Many car owners fail to disclose who’ll be driving the vehicle. You may be tempted to save money by saying you’re the only primary driver. However, failing to disclose other licensed drivers who regularly use your car is considered fraud.
If another driver has an accident while driving your car, you can be held personally liable for any damages. Depending on what that driver does, insurance companies may deny the claim and terminate your coverage. It’s best to make known all the people in your home with access to your car and purchase cheap high-risk insurance if necessary.
2. Failing to Reveal Renters In Your Home
If renting out your basement or another area of your home, you must disclose this information to your insurance brokers, as you’re required to buy a residential fire policy. This policy protects you from legal liability if someone is hurt or killed on your property. Additionally, it’s good to tell your renters about the benefits of tenant insurance for added protection.
3. Renovating Without Updating Your Home Insurance
When you purchase house insurance, you must disclose the structures and appliances in your home, and you’ll be covered for a set amount. Your insurance provider may not cover any renovations or improvements that increase your home’s value if you don’t disclose the information to your insurance broker.
Some changes can lower your premiums. For example, installing a home security system or water detection unit may reduce your risk level, making you eligible for discounted insurance costs. Always be forthcoming with your insurance broker about changes to your home.
4. Providing False Information
Insurance premiums are based on several factors, including your address. You may be tempted to save on your premiums by misrepresenting where you live, but you’ll only hurt yourself in the long run. Providing false information to insurance companies can lead to your policy’s cancellation and denial of your claim. You may also face legal action.
Home and Auto Insurance in Nova Scotia
At Eisenhauer Insurance Inc., our brokers help you find the best home and auto policy rates for your needs. Combining your insurance can save you 10 to 40 per cent on each policy. Contact us today to learn more about our home and car insurance policies in Halifax and throughout Nova Scotia.