When deciding about your insurance, it can be a balancing act deciding how much coverage to buy. Understandably, budgetary constraints may impact your coverage; however, it often doesn’t cost significantly more to get a higher protection limit or add an endorsement that broadens coverage. Few people will regret spending a little more for the extra coverage when a claim occurs, preventing a sizeable out-of-pocket expenditure.

Avoiding these common insurance mistakes will help ensure you have solid protection.

Underinsuring your home. Failing to insure your home at its replacement value is the biggest mistake a homeowner can make. The cost to rebuild a home is typically more than its market value and can fluctuate over time due to labor and building supply costs. If your home is significantly underinsured, you may need more funds to rebuild.

Not having extended replacement cost coverage. This optional coverage can pay to rebuild your home exactly as it was, even if the cost exceeds the estimated replacement cost of the house. The primary purpose is to protect you against sudden increases in materials or construction costs that can occur after a hurricane or other disaster. Depending on your policy, extended replacement costs can pay up to an additional 100% of your policy’s Dwelling Coverage limit.

Not considering building code change additional costs. Building codes change periodically. If your home is badly damaged, you may be required to rebuild to meet new building codes. A basic homeowner policy typically excludes these extra expenses. However, you can purchase an “ordinance or law endorsement” that pays a specified amount toward these costs.

Ignoring flood and earthquake coverage. Just because you don’t live along a river or in California doesn’t mean that you don’t need to seriously consider these coverages, which are excluded under a standard home policy.

Not buying renters insurance. If you rent (or cohabitate and don’t own the home you live in), a renters policy not only covers your possessions but also provides liability protection. It also covers additional living expenses if a fire or other covered situation requires that you move out temporarily.

Failing to have replacement cost on contents. Whether you rent or own, make sure your possessions are insured at the cost of replacing them with new comparable items. Otherwise, you’d only receive the depreciated value of your possessions, which is probably only a fraction of what it would cost you to replace them. Imagine having to replace everything, and you’ll quickly see why this is essential.

Purchasing only the most essential coverage. When unexpected accidents in life become a reality, having only basic coverage can still leave a significant financial burden on you. Paying for insurance coverage that doesn’t cover your needs isn’t helpful. Talk to your agent at Murphy Insurance about ways to manage your costs while having higher limits in the areas where the most significant risk exists, such as:

  • bodily injury to others
  • damage to others’ property
  • medical coverage
  • personal liability
  • underinsured/uninsured motorist coverage

Read Other Blog Posts

Women talking

Understanding the Insurance Knowledge Gap Among Gen Z

Surveys reveals that many Gen Z adults feel overwhelmed by insurance and lack understanding of basic coverage terms, leading to gaps in their protection. However, by working with trusted insurance professionals, they can gain clarity and make informed decisions about essential coverage for their future.
Murphy’s Law Now Officially Sponsored by Murphy Insurance

Murphy’s Law: Now Officially Sponsored by Murphy Insurance

Murphy Insurance is now the official sponsor of Murphy’s Law—because if anything can go wrong, it probably already has. To mark the occasion, we’re rolling out a tongue-in-cheek lineup of “coverage” for life’s most ridiculous moments, from lost socks to seagull snack theft. While these faux policies are just for fun (for now), our real team is always here with real coverage for life’s unpredictable turns. Happy April Fools Day from Murphy Insurance—when Murphy’s Law strikes, call Murphy Insurance.
Auto Insurance in Hudson MA

Auto Insurance in Hudson, MA: What You Need to Know

If you live in Hudson, MA, or the surrounding areas, securing the right auto insurance is essential. Whether you’re a daily commuter, a weekend traveler, or a first-time driver, having the appropriate coverage ensures protection on the road and compliance with Massachusetts’ legal requirements.
Car close-up

What to Do After a Hit-and-Run

When you’re involved in a vehicle collision and the other driver takes off without exchanging insurance information, this is commonly referred to as a hit-and-run. Review the following guidance to understand what information to collect and who to contact following a hit-and-run incident.
Pest Prevention Keep Your Home Pest-Free with Proactive Measures

Pest Prevention | Keep Your Home Pest-Free with Proactive Measures

Pests can cause structural damage, contaminate food, and pose health risks, making proactive prevention essential since home insurance doesn’t cover pest-related damage. Key prevention tips include proper food storage, maintaining outdoor vegetation, regular home inspections, and keeping living spaces clean to minimize pest attraction. For persistent issues, professional pest control may be necessary, and Murphy Insurance is available to provide guidance on home protection and insurance coverage.
Stairs

How to Prevent Falls at Home

Falls are one of the most common and dangerous accidents that occur at home and on the job—especially on staircases. In order to determine whether there are fall hazards within your home, be sure to ask yourself these key questions.
Outdoor Maintenance: Protecting Your Home and Enhancing Your Curb Appeal

Outdoor Maintenance | Protecting Your Home and Enhancing Your Curb Appeal

Regular outdoor maintenance not only enhances your home's curb appeal but also prevents costly damage and potential insurance issues. Key tasks include cleaning gutters, inspecting the roof, maintaining landscaping, power washing exteriors, and ensuring outdoor structures like fences and decks are in good condition. Staying proactive with seasonal upkeep helps protect your home, reduce long-term repair costs, and maintain insurance coverage eligibility.
Hot Tub Safety 101 | Protect Your Home, Guests, and Peace of Mind

Hot Tub Safety 101 | Protect Your Home, Guests, and Peace of Mind

Hot tubs offer relaxation but come with safety and liability risks, including potential injuries, health concerns, and insurance coverage gaps. Key precautions include supervising children, maintaining proper water chemistry, setting safe temperature limits, and enforcing responsible usage to prevent accidents. Homeowners should review their insurance policies and consider additional coverage, such as a personal umbrella policy, to ensure financial protection while enjoying their hot tub safely.
Car keys

Avoiding Problems When Buying Used Vehicles

While buying a used vehicle will save you money in purchase price and help you avoid depreciation costs, it is important to do your research before you purchase one. To avoid buying a car with hidden problems, consider these purchase precautions.

Visit Our Personal Insurance Page

Personal Insurance

Life is an ever-changing journey, and it deserves a thoughtful, comprehensive plan to protect the things and people that matter most. Our dedicated team at Murphy Insurance is here to assist you in creating that plan. With a wide range of product options at our disposal, we ensure that your plan is tailored precisely to your requirements. Our commitment to providing clear, intelligent guidance to help you achieve true peace of mind. Learn more about our personal insurance portfolio.