Don’t Select an Insurance By Price Alone
It is always a great idea to shop around when you are looking to purchase new insurance for your home or auto, but be sure to avoid common mistakes such as only concentrating on the numbers and not the policy you are buying. Cheap does not always come out as the right more.
Check around with friends and family to find out their personal experience with the particular company you are researching. If they have had to make a claim, they can give you invaluable insight into what to expect should you have to also deal with the company in making a claim.
Insure Your Home for its Cost of Rebuilding instead of its Real Estate Value
As interest rates are at an all time low, many people have been looking into selling or buying a new home. Be careful that you understand that the ticket price of the home is really irrelevant when it comes to insurance. You want to be sure that you are using the cost of actually rebuilding the home. This number is almost always higher than what they are asking for the home. Be sure you talk to your agent to thoroughly understand what coverage you are paying for.
Auto: Purchasing the Minimum Amount of Liability Insurance.
Don’t fall into the trap of only obtaining the minimum required by your state. This might be tempting, however should you get sued because of an accident, you may end up paying a lot more money than you expected.
If you are purchasing an older vehicle, you may want to consider dropping your comprehensive insurance instead, and keeping your liability at a higher number. You will save money in the long wrong should you have a claim against you.
Skipping Renters Insurance
Renters insurance is not only a smart idea to protect your belongings in case of fire or other disaster, it protects you if a guest in your home is injured and decides to sue you. Not having renters insurance can then become a very bad and costly decision.
Please give us a call at (651) 739-9684 for any questions that you have.