Insurance can be a tricky purchase. Auto lienholder happy? Check.
Mortgage lender happy? Check.
But this simply isn't enough! Some things on your insurance policy deserve
a little more attention. As an insurance
agent, here are some of the BIGGEST coverage mistakes I’ve seen.
Mistake #1:
Buying Only The Required State Minimum Liability Insurance
Every state has a minimum amount of liability
insurance that is required in order to drive a car.
But it’s typically nowhere near enough coverage! Choosing only the minimum liability insurance
could leave you open to a lawsuit, garnished wages, or potentially losing an
asset, like your home.
Discuss different liability amounts with your
agent to see what is necessary based on your income, net worth, and
liabilities. (Another bonus? It won’t cost nearly as much as you might
think!)
Mistake #2: Not Insuring Your Home For
Replacement Cost
Many people think they only need enough
coverage to insure their home for the amount they paid for it. Not true!
You need to be insured for the amount of money it would cost to REPLACE
your home.
If a fire or tornado destroyed the house, you
would need insurance to replace it. The
total cost could be tens of thousands more than the house would have sold for
on the market. If you’re currently only
insured for the cash value of your home, you could be at risk!
Mistake #3: Buying Life Insurance Through Work
Most people tell me that they have life
insurance through work and aren’t interested in purchasing their own
coverage. This is also a mistake.
The problem?
The majority of us don’t stay at jobs for 30 years anymore. And if you develop health issues and leave
your current employer….you might not be able to get coverage again!
When you purchase your own life insurance (which
is extremely affordable), you are covered no matter where you work or what
health problems you might develop in the future. It’s the smarter choice!
Mistake #4: Buying The Cheapest Policy
It’s tempting to shop for insurance and just
pick whatever is the cheapest, but it’s usually not the best idea.
First you want to make sure that you’re buying
from a reputable company. You want a
solid insurance carrier that you can trust to pay your claims.
And you want to make sure you’re comparing
apples to apples. Does the cheaper
policy only insure your home for cash value instead of replacement cost (like
mistake #2)? Does one company exclude water leaks but another cover them? Big details can be hidden in the small print!
Mistake #5: Not Using An Agent
Best way to avoid ALL of these mistakes? Work with an insurance agent!
We know all about insurance and can find the
right coverage for your specific situation.
We’ll make sure your liability limits are high enough, that your home
will be replaced after a loss, that you won’t lose your life insurance when you
change jobs, and that you aren’t buying an inadequate policy that doesn’t
protect you.
Call us today for a quote!
508-347-9343
