Top Seven Mistakes People Make When They Buy Homeowners Insurance
Ray Cogan
Avoid these snafus when you purchase your homeowners insurance!
Your home is the most expensive asset you own. You keep your personal property there, which could be worth thousands of dollars. But, most importantly, the people you love live there. Your home is the most important place in your life. ***
So, when it comes to covering your home, it needs to be done with knowledge and insight. A home that is not covered correctly by insurance can cost the owner thousands of dollars and personal property can be lost forever, never to be replaced.
Unfortunately, there are mistakes that homeowners make when getting coverage. Here are some of those typical mistakes:
1. Underinsuring your home. No one wants to pay more for insurance than they have to-it gets expensive. What’s even worse though is underinsuring your home. Not having enough coverage means that if there is a loss, you will have to pay the deductible along with whatever gaps in your insurance policy. The best way to make sure you have enough coverage is to customize your policy based on the year built, square footage, type of construction, and any other detached buildings on the property. Your insurance agent will help you correctly cover your home.
2. Setting your deductible too high or too low. Your deductible is the out-of-pocket amount you’re responsible for paying before your insurance then begins to pay for the loss. The higher your deductible, the lower your premiums.
3. Being satisfied with only the basic policy. Some people believe that they have all the coverage they need with only the basic coverage. The standard homeowner’s policy protects your home from fire, wind, rain, burglary, and a few other losses. Earthquakes and floods are not covered under this type of policy. You would need to get a separate policy for it. Maryland residents who live in flood plains or near the coast are required to get coverage.
4. Assuming that your home business is covered under your homeowner’s policy. Business property and liability are not covered under your homeowner’s policy. Any loss to them is excluded. Plus, not informing your insurance agent of the home business may be considered “material misrepresentation” and could nullify your entire homeowner’s policy. Inform your agent of your home business so you can have it covered under an endorsement (if it is eligible.)
5. Assuming a standard policy will cover mold or sewage backup issues. Homeowners’ policies don't offer this coverage. If they did, insurance companies would go out of business.
6. Buying only the required liability insurance. Your liability coverage protects you should guests be injured on your property. It also covers you if your dog bites them or someone slips on the outdoor steps. The typical homeowner’s policy includes this type of coverage. Most insureds get only a minimal level of insurance. Due to the high legal and medical costs, it’s recommended that liability be no less than $300,000.
7. Not taking time to do an inventory of your personal property. Most people acquire a great extent of property over the decades. That property may include high-priced jewelry, artwork, antiques, or collectibles. Your homeowner’s insurance may not fully cover these items as there are limits on these. You need to get a special personal articles policy.
Now that you know the typical mistakes some homeowners make, you can avoid them by talking with your homeowner’s insurance agent. It may take extra time and expense, but you will be fully covered and save a lot of money and heartache in the long run.
Lindquist Insurance has an experienced and licensed staff who can consult you on the best homeowner’s insurance
coverage for you and your family. Call (301) 694-0008 for a consultation. We serve the Frederick, MD, and Annapolis, MD areas.
*** Visit the State of Maryland website
to find out more about homeowners insurance rates and coverages.
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At Lindquist Insurance, we offer personal, proactive service that keeps you focused on growth, not guesswork. Whether you're expanding, hiring, or just refreshing for the season, we’re here to ensure your business is covered from every angle. Call us today at (301) 694-0008 or visit www.lindquistinsurance.com to schedule your Spring Business Insurance Checkup.
We serve the Annapolis and Frederick, MD area.
Spring brings longer days, blooming landscapes, and unpredictable weather for businesses in Annapolis and Frederick, Maryland. Storms in the Mid-Atlantic can bring heavy rain, flooding, hail, and strong winds, often leading to costly damages for business owners. That’s why now is the perfect time to evaluate your business insurance coverage and ensure you’re protected against the unique seasonal risks spring brings. *** Why Spring Storms Matter to Maryland Business Owners Maryland's spring weather is known for its volatility. Sudden thunderstorms, high winds, and localized flooding can affect both coastal towns like Annapolis and inland areas like Frederick. In 2022 alone, several businesses in Frederick County experienced power outages and property damage due to intense spring storms. Similarly, businesses near the Chesapeake Bay face storm surges and flash flooding, especially during early-season weather systems. For local businesses—from boutique shops in downtown Annapolis to industrial warehouses near Frederick’s tech corridor—spring weather disruptions can mean more than just cleanup. They can lead to business interruptions, loss of inventory, and expensive repairs. How Business Insurance Can Help Business insurance is a critical safeguard that provides financial protection when natural disasters strike. But not all policies are created equal. Understanding the specific coverages that protect against spring-related risks can make a big difference when it matters most. Here are the top types of business insurance you should review this season: 1. Commercial Property Insurance. This is the foundation of most business insurance policies. It covers your physical assets, such as your building, equipment, and inventory, if they’re damaged by covered perils like wind, hail, or lightning. If a windstorm damages the roof of your downtown Annapolis storefront or flooding ruins inventory stored in your Frederick warehouse, commercial property insurance helps cover repair and replacement costs. Be sure to check if your policy includes flood protection. You may need to purchase separate flood insurance, especially in flood-prone areas near the Chesapeake Bay. 2. Business Interruption Insurance. Also known as business income insurance, this coverage kicks in if your operations are forced to shut down due to storm-related damage. It covers lost income, payroll, rent, and other operating expenses during the downtime. Imagine a storm causes structural damage to your Frederick café, requiring you to close for two weeks. Business interruption insurance can help you stay afloat financially until you reopen. 3. Equipment Breakdown Insurance. Spring storms can lead to power surges and electrical issues, which can damage your essential equipment, like refrigerators, HVAC systems, or point-of-sale terminals. Equipment breakdown insurance helps cover the cost of repair or replacement, so your operations don't have to close temporarily. This is crucial for restaurants, retail shops, and healthcare facilities in Annapolis and Frederick that rely on specialized machinery. 4. Commercial Auto Insurance. If your business uses vehicles for deliveries, transportation, or service calls. Make sure your commercial auto insurance includes comprehensive coverage. This protects your vehicles from non-collision-related damages, including those caused by hail, fallen trees, or flooding. Local fleets operating between Annapolis and Frederick are especially vulnerable during spring travel, when roads may be slick or obstructed. 5. General Liability Insurance. Spring storms sometimes lead to unexpected hazards, like a slippery floor or fallen debris outside your storefront, that can cause injury to customers or passersby. General liability insurance covers medical costs, legal fees, and settlements if someone gets hurt on your property. This type of coverage is essential for public-facing businesses, such as those located along the bustling streets of Annapolis or in Frederick’s historic downtown district. Take These Steps Now to Stay Protected Review Your Policy with a Local Agent. Insurance needs vary depending on location, business type, and risk exposure. A local agent, like the experienced team at Lindquist Insurance, can assess your current coverage and suggest any needed updates tailored to the Annapolis and Frederick regions. 1. Document and Protect Your Assets. Take an inventory of your equipment, supplies, and property. Back up digital records and store documents off-site or in the cloud. This speeds up claims processing in the event of a loss. 2. Create a Spring Storm Preparedness Plan. Include emergency contact lists, backup power sources, evacuation procedures, and a communication plan for employees and customers. 3. Schedule an Annual Insurance Checkup. Use the changing season as a reminder to reassess your business insurance needs. Your business evolves—and so should your protection. At Lindquist Insurance , we’re proud to serve the business communities of Annapolis and Frederick, MD. Our goal is to help you weather any storm with confidence, knowing you’re covered where it counts. Whether you run a waterfront shop in Annapolis or a growing service business in Frederick, our team is ready to help you find the right business insurance solutions for the spring season and beyond. Contact our business insurance specialists today for a free business insurance review or call us at (301) 694-0008 or visit www.lindquistinsurance.com. *** For more information on Maryland weather, visit the Weather US website .
At Lindquist Insurance, we’re here to help you with your car insurance now and in the future. If you're thinking about switching your car insurance and live in Frederick, Annapolis, or Washington, DC, now is the perfect time to reach out. At Lindquist Insurance, our friendly local agents make the process simple, fast, and tailored to you. We’ll compare top providers, explain your options, and guide you every step of the way.
Call Lindquist Insurance today at (301) 694-3008 or visit www.lindquisinsurance.com to request a free, no-obligation quote.
We serve the Frederick, MD, Annapolis, MD, and Washington, D.C. areas.
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