Avoiding common insurance mistakes will ensure that you get the best policy for your needs and budget. A Gainsco insurance agent will help you with the insurance process. Simply dropping coverage or reducing your coverage can leave you dangerously underinsured, and cost you more money in the event of a disaster. The following are five common insurance mistakes people make with home, auto, flood, and renter insurance and how to avoid them.

1. Ensuring your home for the real estate value and not the cost of rebuilding the home. Many homeowners reduce the insurance on their home when real estate prices go down. No matter where the real estate market is at, your coverage should cover the amount necessary to rebuild your home completely. Homeowners insurance is for the cost of rebuilding, not the sale price. A better way to save on homeowners insurance is to raise your deductible. Increasing your deductible to $1000 from $500 can save you up to 25% on premium payments.
2. Choosing an insurance company only based on price. While you want an insurance company that offers a competitive price, the company you choose should have good customer service reviews and be financially sound. A better way to save here is to research the companies financial health and ask friends and family about their experiences with the company.
3. Getting rid of flood insurance. Flood damage is not covered by homeowners or renters insurance policies. 25% of flood losses happen in low risk areas, and all sorts of weather patterns can result in unexpected flooding. Before you purchase a home, determine whether the home is in a flood zone and if so consider a less risky location. Flood insurance can be purchased from the National Flood Insurance Program (NFIP) or a private insurance company.
4. Only carrying the state minimum of liability for your auto insurance. Only getting the minimum amount of liability coverage required by your state will likely result in you paying more out of pocket in an accident or legal battle. It is generally recommended to carry a minimum of $100,000 in bodily injury protection per person and $300,000 per accident.
5. Not carrying renters insurance. When you live in a rental unit or home, your possessions and extra living expenses if you are displaced are not covered by your landlord's homeowners policy. Renters insurance covers these things and provides liability protection in case someone is injured in your home. A way to save money here is to look into bundling multiple policies; many insurance companies offer discount savings for purchasing multiple policies such as renters, life, and auto.

Working with a Gainsco insurance agent will ensure that you do not make these mistakes, and increase your likelihood of getting the best policy for your needs.