The Most Common Homeowners Insurance Policies You Should Avoid

Have you been shopping around for the best deal on your homeowners insurance but are not sure which policies are best for you? Are you trying to save money but want your property to be covered in the event of a disaster? Many people assume that most insurance is a great idea and the more you have, the better off you’ll be. Believe it or not, there are types of homeowners insurance you should avoid. Unfortunately, it can be difficult to determine which policies are necessary and which policies simply aren’t. To find out what types of insurance you should avoid before you sign the dotted line, take a look at this helpful list we’ve put together.

Private Mortgage Insurance (PMI)

While many people often are told they simply have to get this insurance, it’s best to avoid the extra cost when possible. Private mortgage insurance is usually used only to protect the investor’s financial investment. This means if your down payment is not at least 20% of the purchase price of your home, the lender will require an assurance against default. This comes in the form of private mortgage insurance. While it’s a great idea for the investor, you as the homeowner end up paying a substantial amount in premiums.

If you’d like to avoid this extra expense, you do have options. Of course the preferred method would be to save up more money for you down payment. However, this isn’t an option available to everyone. In this case, you might consider a piggyback loan or a No-PMI Loan. You’ll still pay a little more towards you mortgage, but overall you’ll save on insurance you simply don’t need. Perhaps best of all, the extra money you’ll be saving by avoiding PMI insurance will for the most part go towards your mortgage reducing what you owe on your home.

Additional Insurance You Don’t Need

While there are some additional types of insurance you will want to purchase to compliment your standard policy, some are simply not necessary. For instance, if you live somewhere where earthquakes aren’t common, don’t waste your money on extra coverage for this type of disaster. Instead, use the money you’ll save to get additional insurance that you’ll actually use. A great additional insurance option will include protection against sewage pipes. While many people assume this is included in their standard policy, it isn’t always. It’s usually very affordable (about $50 per year) and can save you thousands in the event you ever need it.

  • What You Need to Know About Homeowners Insurance

    What You Need to Know About Homeowners Insurance

    Have you been looking for the best homeowners insurance policies available and are beginning to feel overwhelmed? Are you unsure what type of policy you need or which providers offer the best coverage? Find out more about the four tips you should use to get the best deal on your homeowners insurance coverage.

    • Different Types of Available Homeowners Insurance »

      Different Types of Available Homeowners Insurance

      Have you been looking for the best homeowners insurance policies available in the area? Are you finding that understanding each of the different types of policies is more overwhelming than you thought it might be? When you're trying to find the right type of policy to protect your home, it can be a very confusing and long process. The most important thing you'll need to know to ensure you're getting the right policy for you is what each type of homeowners insurance can offer.

      • How to Find Affordable Homeowners Insurance » How to Find Affordable Homeowners Insurance

        The best way to save on your homeowners insurance is by shopping around for the best deal. Many times when you look around, you'll find it's easy to get a great policy at a price you can afford. While this used to be a big hassle, our site makes it easier than ever. Find out how much you can save right now using the resources available on our site!

        • Understanding the Basics of Homeowners Insurance »

          Are you looking for a good homeowners insurance policy to help protect you home and property? Are you in need of a policy that will include everything you're looking for but simply aren't sure where to get started? This is why we've put together a helpful guide to better helping you understand your standard coverage. Before you sign your next homeowners insurance policy, take a look at our guide to helping you understand what the standard policy will include.

          • Homeowners Insurance for Manufactured Homes »

            Homeowners Insurance for Manufactured Homes

            Are you finding it difficult to purchase homeowners insurance for your manufactured home? Are you looking for affordable rates on insurance policies to protect your manufactured home in the event of a natural disaster? In today's economy, more and more people are buying manufactured homes because of the reduced price and freedom they can offer. If you're looking for the best homeowners insurance policy to help cover your home without breaking the bank, we can help. Take a look at this easy to use guide we've put together to help you get the best deal on excellent policies for your home.

            • What Types of Homeowners Insurance Should You Avoid? »

              Have you been shopping around for the best deal on your homeowners insurance but are not sure which policies are best for you? Are you trying to save money but want your property to be covered in the event of a disaster? Many people assume that most insurance is a great idea and the more you have, the better off you’ll be. Believe it or not, there are types of homeowners insurance you should avoid. Unfortunately, it can be difficult to determine which policies are necessary and which policies simply aren’t. To find out what types of insurance you should avoid before you sign the dotted line, take a look at this helpful list we’ve put together.