Buying a home is exciting — but protecting it the right way is critical. Many homeowners don’t realize they have coverage gaps until it’s too late. In this guide, we break down the top home insurance mistakes we see homeowners make, what they cost, and how you can avoid them.
Many homeowners think market value = rebuild cost. But if your $400,000 home burns down, the cost to rebuild today could be $500,000 due to rising material and labor costs.
Solution: Always insure your home for replacement cost, not market price. Ask your agent to use a replacement cost estimator to calculate accurate coverage.
In NC, 25% of flood claims come from outside FEMA flood zones. Standard home insurance doesn’t cover flooding at all.
Solution: Consider flood insurance even if you’re not in a high-risk area—it’s often more affordable than you think.
When it comes to homeowners insurance, two terms often confuse North Carolina homeowners: Replacement Cost (RC) and Guaranteed Replacement Cost (GRC). Both sound similar, but the differences can mean tens of thousands of dollars in out-of-pocket costs after a disaster.
Replacement Cost Coverage pays to rebuild or repair your home after a covered loss, up to the coverage limit you select on your policy.
Guaranteed Replacement Cost Coverage goes a step further. It covers the entire cost to rebuild your home, even if it exceeds your policy’s limit.
Solution: Ask your insurance agent to explain your options and to provide reasoning for any recommendations.
The average bodily injury liability claim costs around $80,000. Many policies only include $100,000 liability coverage, leaving you vulnerable.
Solution: Increase your liability limit to $300,000–$500,000 and consider an umbrella policy for extra protection.
Home value, personal property, and risk factors change over time. Sticking with the same coverage year after year creates gaps.
Solution: Schedule an annual insurance review to keep your coverage aligned with your needs.
Don’t wait until after a loss to find out you’re underinsured. Our team will review your current policy for free and send you a comprehensive summary of how well protected you are.
