Most homeowner’s policies do not cover flood damage. That gap surprises many families after storms hit. Yet smart agencies plan around that risk. They also teach the difference between price and value. They show how simple steps raise protection fast. And they fix common blind spots before claims arrive. In this guide, readers see seven mistakes many people make. Then they learn how a strong advisor avoids them. Along the way, the piece notes useful tips and links. It keeps the language clear and friendly. It also favors short, active lines for easy reading. In practice, centennial insurance services helps clients spot trouble early. That support often prevents claim shocks later. So, let’s break down the slipups people can dodge today.
Insuring for market value, not rebuild cost, Centennial Insurance Services
Many people match coverage to a home’s price tag. However, claims pay what it costs to rebuild, and that number can differ greatly from the market value. Labor, debris removal, and materials drive rebuild cost, which may spike after storms or fires. Therefore, policies should reflect current rebuild numbers. The difference matters when walls need to rise again. Regulators and experts stress this key point. Replacement cost is about rebuilding, not selling.
- Ask for a current replacement cost estimate each year.
- Update limits after remodels or additions.
- Review extended or guaranteed replacement options.
- Keep records of upgrades and permits.
- Confirm coverage meets any “80% rule” requirements.
Skipping flood or quake coverage
Floods happen in places far from rivers. In fact, they are among the costliest U.S. disasters. Yet standard home policies exclude flood damage. Families can add flood coverage through the NFIP or a private plan. However, many wait until a storm nears. That delay can be costly because waiting periods often apply. Earthquake coverage is also a separate add-on in many states. Still, people overlook it until after a shake. A good advisor checks local risks and maps. Then they suggest practical add-ons that fit budgets. In these reviews, centennial insurance services helps clients act before the weather turns rough. As a result, households gain clearer cash support when water rises or the ground moves.
Not knowing ACV vs. replacement
Policy terms trip up even careful readers. Actual Cash Value, or ACV, subtracts depreciation. Replacement Cost pays what it takes to buy new. The gap can be wide on older roofs or gear. Therefore, owners should know which rule applies and ask how recoverable depreciation works. State and national guides explain these rules in plain terms.
- Check whether your dwelling uses ACV or Replacement Cost.
- Confirm your personal property valuation method.
- Ask about timelines to claim recoverable depreciation.
- Review special limits for jewelry, art, or collectibles.
- Note wind or named-storm deductibles in coastal areas.
Forgetting a simple home inventory
After a loss, memory fades fast under stress. A simple inventory speeds claims and sets the right limits. It also helps during tax time and policy reviews. Many people plan to make one, then delay it. Instead, they can film rooms with a phone today. They can save serial numbers and receipts, too. During policy checkups, centennial insurance services requests an updated list. That habit helps families avoid painful shortfalls later. Plus, it gives adjusters a clear record to verify.
- Capture every room, closet, and the garage.
- Store videos and lists in the cloud.
- Record model and serial numbers where possible.
- Update after holidays, moves, or big buys.
- Share a copy with your advisor each year.
Overlooking discounts, deductibles, and bundles
Many carriers offer savings for alarms, sprinklers, or safe roofs. Bundling home and auto can also lower costs. Yet people rarely ask for a fresh discount check. Meanwhile, deductibles deserve careful thought. Higher deductibles often cut premiums, yet they raise out-of-pocket costs. Therefore, families should match deductibles to their cash reserves. They should also review claim history and local hazards. Consumer guidance from regulators notes that coverage choices change payouts. Replacement coverage usually pays more than ACV after a loss. Annual reviews help keep the mix sensible and lean. Advisors can also make changes before renewal dates. That timing may prevent fees or gaps during switches. Simple questions now can save real money later.
Not updating policies after life changes.
Life moves, but policies often stay still. However, new jobs, remodels, or valuables change risk. After a kitchen upgrade, rebuild costs can jump. So, owners should raise limits to match work. If they do not, coinsurance rules may cut payments. Families also add backyard sheds, decks, or offices. Those need coverage checks, too. During these talks, centennial insurance services encourages quick mid-year updates. That guidance keeps protection aligned with real life.
- Tell your agent about remodels or new structures.
- Add riders for jewelry, gear, or collectibles.
- Adjust liability if you host more guests.
- Review coverage before short-term rentals start.
- Revisit limits after big price swings in materials.
Skimming exclusions and special limits + final takeaway
People love quick summaries, but fine print matters. Exclusions define what a policy will not cover. Flood and quake are often excluded unless added. Special limits may cap items like jewelry or cash. Therefore, readers should list likely risks and match add-ons. Trusted sources explain how exclusions shape payouts. They also show how policy forms differ by scope. Before signing, families should ask for a sample policy. Then they should highlight every limit and waiting period. Clear notes today prevent surprises tomorrow. Finally, a steady partner keeps reviews on track. They check values, risks, and discounts each year. As a closing note, readers seeking hands-on help can call Rocky Mountain Insurance Services for a friendly review. Smart questions, steady updates, and simple lists go a long way. With that plan, coverage stays strong when life gets loud.