The coverage decisions you make at closing can haunt you years later. Here are the five mistakes IronHaven sees most often in the first year of homeownership in North Carolina.
Mistake 1: Buying the Cheapest Policy to Get Through Closing
Mortgage lenders require homeowners insurance at closing, but they don't require it to be adequate. Many new homeowners grab the least expensive option to satisfy the lender and don't revisit coverage for years.
Mistake 2: Insuring to Purchase Price Instead of Rebuild Cost
The market value of your home includes land, location, and comparable sales - none of which you need to rebuild the structure if it burns down. Rebuild cost is driven by local construction and labor costs, which can be significantly different from what you paid.
Mistake 3: Skipping Flood and Earthquake Coverage
Standard homeowners policies exclude both. North Carolina's storm risk makes flood coverage worth discussing even outside mapped flood zones.
Mistake 4: Not Scheduling High-Value Items
Jewelry, collectibles, electronics, and art above the standard personal property sublimit need to be listed individually on the policy. The sublimit for jewelry on a standard policy is often $1,500-2,000.
Mistake 5: Not Updating Coverage After Improvements
A finished basement, renovated kitchen, or added bathroom increases your rebuild cost. Your agent doesn't know you did it unless you tell them, and being underinsured at claim time is the worst time to find out. The NC Department of Insurance publishes a homeowners insurance guide that's worth reading in your first year of homeownership in North Carolina. Start a home insurance quote or contact IronHaven to make sure your Wake Forest or North Carolina home coverage keeps pace with your investment.
