Most people assume that they have adequate homeowner’s insurance coverage; however, the biggest mistake people make is failing to understand what their policy actually covers.  Your home is probably the biggest investment that you have so you need to make sure your insurance policy is adequate to protect it in case of damage. For example, most standard insurance policies do not cover damages incurred from sewer backups – – this is an extra endorsement that must be purchased in addition to standard coverage.  The same goes for floods and earthquakes.

For more on understanding your homeowner’s insurance policy and endorsements you may need read, “The big homeowners insurance mistake to avoid.”