Six Common Homeowners' Insurance Mistakes to Avoid

If you've gone shopping for homeowners' insurance lately, then you know there are plenty of products to choose from. You don't have to go with the provider that your mortgage lender recommends, nor do you have to go with the most expensive option. Just as with auto and life insurance, some homeowners' insurance policies are favorable, while others amount to highway robbery. Following are six common homeowners' insurance mistakes to avoid.

1. First Come, First Choose

It is never a good idea to go with the first homeowners' insurance policy you find, just as you wouldn't buy a mattress or a car without shopping around. There are plenty of providers to choose from, no matter where you live, and there will always be more favorable rates elsewhere. One of the best places to start is with the NAIC's State Web Map, which gives you access to each state's individual insurance Web site. There you can find links to available homeowners' insurance providers near where you live.

2. Glossing Over the Details

You might be surprised to discover that the rates are not the only things that matter. When shopping for homeowners' insurance, check up on pay rate claims, deductibles and reputations before settling on a provider. Even if the rates are good at first glance, the company might be stingy with paying claims or prone to raising rates after the first year of service. Talk to people in your neighborhood to find out how they like their providers before making a decision.

3. Ignoring the Agents

It isn't always about the insurance provider, according to the NAIC. In fact, experiences can vary widely within a homeowners' insurance company because of the qualifications of their agents. If you find yourself with an agent who doesn't care if you get what you deserve and who doesn't properly investigate claims, you could lose significant pocket change. Always research individual agents along with the companies for which they work.

4. Not Reading Your Policy