A Personal Insurance Update
Every homeowner needs and wants competitively priced personal insurance. Personal insurance can be tricky, especially if you take your advice from certain entertaining television advertisements. Many of these ads make insurance buying sound as simple as getting a cup of coffee. The problem with this kind of thinking is that if you do not know what kind of personal insurance you need, how can you know what kind of insurance to buy?
We put together a short list of mistakes many people make when buying insurance. We hope you will call our office to get a no-obligation personal insurance review.
Common Insurance Mistakes:
- Not knowing the replacement value of your home. Many people don’t understand the difference between “market value” and “replacement value.” Market value refers to the value of your home for resale purposes. Replacement value refers to the cost to rebuild your home from the foundation up.
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- Assuming you have flood insurance. All personal insurance policies exclude flood damage and earthquake damage to your home and personal property. We can provide you with a competitively priced option for both kinds of coverage based on your individual needs.
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- Setting your deductible too low. Many people set their auto insurance or home insurance deductibles too low. Often a small increase in deductibles can offer significant savings from year to year. If you have a good claim or loss history, it will pay you to increase your personal insurance deductibles.
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- Failing to use an independent agent. Independent agents, like our firm, can shop your insurance to dozens of insurers and work with you to find the best possible combination of coverage, price, and service. We are also there to help you manage and process all your personal insurance claims. We work for you, not for the insurance company.
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- Buying insurance based on price alone. Low priced insurance is good, but it may mean that in order to get a low price, the company is offering limited coverage. Low priced insurance may seem good at first, but if you have a claim and have to pay a large amount out of your pocket, it is not low-cost insurance