Think you’re fully protected just because you have homeowners insurance?
Would your policy really cover you the way you expect if disaster hit tomorrow?
You’re not alone if you’re unsure. Many people assume they’re covered for anything that could go wrong. The truth? Most homeowners are underinsured — and don’t even realize it until it’s too late.
In this blog, you’ll learn the top 5 mistakes people make when buying homeowners insurance — and how to avoid them. We’ll show you how to make smart, informed choices so your coverage actually protects your home and your finances.
❌ Mistake #1: Not Buying Enough (or the Right) Coverage
A lot of people think the amount they paid for their home is the amount they should insure it for. But that’s not how insurance works.
Here’s the issue:
- Home values change.
- Construction costs go up.
- If your home burns down or gets severely damaged, you need enough replacement coverage to rebuild it — not just repay your mortgage.
Don’t fall into the “cheapest quote” trap. A cheaper policy might leave you underinsured when it matters most.
✅ What to Do Instead:
- Insure your home for its replacement cost, not its purchase price.
- Review your policy every year, especially after renovations.
- Work with an independent agent who can help you compare policies and tailor coverage to your real needs.
❌ Mistake #2: Not Knowing What Your Policy Doesn’t Cover
It’s easy to assume insurance covers everything. But that’s just not true. In fact, standard homeowners policies have exclusions that might surprise you.
Some common things not covered:
- Flooding
- Earthquakes
- Sewer backups
- Mold or foundation damage
- High-value items like jewelry or art
- Poor maintenance (like a leaking roof you ignored for months)
✅ What to Do Instead:
- Ask questions. Know what’s covered and what isn’t.
- Consider extra coverage for floods, valuables, and water backup.
- Remember: homeowners insurance is not a maintenance plan — it won’t cover wear and tear or neglect.
❌ Mistake #3: Not Shopping Around
Getting one quote is quick, but it’s also risky. You could end up with:
- Higher premiums
- Poor claims service
- Gaps in coverage you don’t see until it’s too late
Every insurance company prices differently — and not all offer the same benefits.
✅ What to Do Instead:
Let Vargas & Vargas Insurance shop for you.
We compare quotes from many top-rated carriers so you get options — and expert help choosing the best fit for your needs.
❌ Mistake #4: Not Updating Your Policy Over Time
Your home changes. Your life changes. Your insurance should change too.
If your policy is outdated, it may not reflect:
- Renovations or home upgrades
- New valuables (like electronics, collectibles, or jewelry)
- Safety features (like a new alarm system)
- Liability risks (like a trampoline or swimming pool)
✅ What to Do Instead:
- Review your policy once a year.
- Call your agent when anything major changes.
- We’ll help you adjust your coverage — no pressure, just smart protection.
❌ Mistake #5: Ignoring Discounts and Bundling Opportunities
You might be paying more than you need to — simply because you didn’t ask about discounts.
Common savings opportunities:
- Bundling your home and auto insurance
- Installing security systems or smoke detectors
- Raising your deductible
- Staying claims-free for several years
✅ What to Do Instead:
- Ask your agent to review all possible discounts.
- We can help you find hidden savings that most people miss.
- A short phone call could save you hundreds of dollars per year.
Final Thoughts: Make Smart Moves Now, Save Yourself Later
Homeowners insurance doesn’t have to be confusing — but it can cost you if you don’t pay attention.
Avoiding these 5 mistakes could save you thousands and give you real peace of mind.
Let’s recap:
✅ Don’t underinsure — know your home’s true replacement cost
✅ Understand what’s not covered
✅ Don’t settle for one quote — compare policies
✅ Update your policy as life changes
✅ Ask about discounts and bundling options
Need Help Reviewing Your Coverage?
At Vargas & Vargas Insurance, we’ve helped Massachusetts families protect their homes for over 45 years. We shop with multiple companies, break things down in plain English, and give honest advice — no pressure.
📞 Call us at 617-298-0655
💬 Visit vargasinsurance.com
✨ We welcome your referrals, too — thank you for trusting us.
