Homeowners Insurance Mistakes to Avoid

Like many homeowners, I purchased insurance to satisfy my mortgage lender’s requirements, not necessarily to understand all the ins and outs of my policy. At the time, my primary concern was that if something catastrophic happened, like a house fire, I’d be covered. Flooding didn’t seem like a risk either, considering my home is perched on top of a mountain. I figured that would protect me from most major disasters. But when Hurricane Helene hit North Carolina, it quickly became clear how little I truly understood about the fine print of my policy.

While many homeowners in my area faced total devastation—homes swept away in mudslides and landslides as the storm unleashed its fury—my house sustained some damage, but nothing that left me homeless. What I didn’t anticipate, however, was the sheer frustration I would experience when trying to navigate my insurance claim. I was shocked to learn that my policy didn’t cover mudslides. As homes were washed down the mountain in the wake of heavy rains, I realized I had naively assumed that my insurer would cover such natural events.

But the surprises didn’t end there. My insurer’s stance on "pre-existing conditions"—even those made worse by the storm—left me baffled. I never thought about the impact of long-term erosion or shifting soil in my area until I tried to file my claim, only to be told that certain damages related to the storm’s impact wouldn’t be covered because they were linked to ongoing issues that predated the disaster. This was a difficult pill to swallow, especially when I had trusted the policy would offer more protection.

Raising Awareness: How to Respond During the Claims Process

The claims process itself was another frustrating learning curve. But looking back, I wish I had been more strategic in how I approached it. If there’s one thing I’ve learned, it’s that being prepared to respond in the right way can sometimes make all the difference in whether or not your claim gets paid.

1. Document Everything: First and foremost, make sure you have clear, detailed documentation of your damages. Take photos, videos, and even notes about the extent of the destruction. The more evidence you have, the stronger your case will be. If possible, get independent appraisals of the damage from contractors or experts who can provide unbiased assessments.

2. Be Clear About the Cause of Damage: When you submit your claim, be sure to specify the exact cause of damage. Insurers will often try to avoid covering things they can classify as "pre-existing conditions." However, if you can demonstrate that the storm exacerbated the situation (such as erosion leading to a mudslide), it can increase the likelihood that the insurer will at least partially cover the damage. You may need to argue that the event was a "trigger" for damages that were worsened by the storm’s direct impact.

3. Understand Policy Exclusions: Don’t just assume that everything will be covered. If your insurer refuses to cover something based on an exclusion in your policy (like mudslides, floods, or erosion), push for a clear explanation of why it’s excluded. In some cases, you might have an additional rider or option that could apply. Ask your insurance company for a thorough breakdown of your exclusions and coverage limits.

4. Know Your Rights and Appeal: If your initial claim is denied or doesn’t result in an adequate payout, don’t be afraid to appeal. Insurance companies are not infallible, and many claim denials can be overturned with the right supporting evidence or additional documentation. You also have the right to file a complaint with your state’s insurance department if you feel your insurer is not treating you fairly.

5. Communicate Effectively: Keep a detailed record of all your communications with your insurance company. This includes emails, phone calls, and letters. If you ever need to escalate the situation or file a complaint, having a clear timeline of your interactions can strengthen your case.

Bottom Line: Know What You’re Covered For

Do you have a copy of your homeowners insurance policy? Have you really read it? Sure, many of us don’t have the luxury of picking and choosing our insurance carrier, but that doesn’t mean you shouldn’t understand your coverage. Whether it’s floods, mudslides, or something else, knowing the specifics of your policy—before disaster strikes—can save you a lot of heartache later.

In my case, having a better understanding of my coverage would have helped manage my expectations in the aftermath of the storm. While the policy may or may not make a difference when you’re facing a disaster, it can certainly help you avoid surprises and prepare yourself mentally for the claims process.

So take a moment. Read your policy. Know your coverage. And when it’s time to file a claim, be prepared, be clear, and be persistent. It might just give you the peace of mind—or clarity—you need when things go wrong.