Mistake #7: Lapse in homeowner's insurance coverage

Homeowner's insurance is to protect you, your belongings and your house. It also protects the bank's investment as long as you owe the bank money for the house. Paying your insurance premium should be the second bill you pay every month. Failing to do so will likely add unwanted expenses to your monthly budget.

Make sure your insurance quote is presented after the agent has sent it through the underwriting process. Sometimes your credit situation will cause you to be denied homeowner's insurance.