Saving money is always a good thing, and shopping around for the best deal when purchasing insurance is a good way to save a few bucks. That being stated, it is not a good idea to reduce your coverage in order to save money. In fact, it can cost you a significant amount of money when a disaster happens to strike. You certainly do not want to be one of those people that are left holding the bag. The good news is that you can save a lot of dough and still have the proper insurance coverage if you make good decisions when choosing your insurance plans. The following information will provide you with the most common mistakes that people make when purchasing insurance policies.
Mistake #1: Insuring Your Home Based On Value Instead Of The Rebuilding Cost
Homeowners insurance is intended to cover the cost of rebuilding, not the current sales value of the property. That means when real estate prices happen to drop, it is not a good idea to reduce the amount of insurance you carry on your home. Unfortunately, far too many property owners make this tragic mistake. Instead, you should always ensure that you have enough coverage to rebuild your home, and replace all of your belongings regardless of what the current real estate market values are. A great way to save money is to raise your deductible. For example, increasing the deductible from $500 to $100 could very well save you upwards of 25% on your homeowners’ insurance payments.
Mistake #2: Choosing An Insurance Agent Solely Based On Price
While it is important to select an insurance agent that offers competitive pricing, it is more important that the agent you work with is both financially sound, and provides a high level of customer service. Often time’s consumers choose an insurance agency based on price alone. Like the old saying goes, you get what you pay for. In this case it can equal cut-rate service. Imagine having to deal with a major issue, such as a fire at your home, and it takes 20-30 phone calls before you receive a return call from your insurance agent? Quality counts a great deal when dealing with an emergency, meaning cut rate service simply does not cut it.
Mistake #3: Skipping The Renters Insurance Policy
A plethora of renters are under the false impression that if a fire, hurricane, or other insured disaster happens to strike that their landlord is responsible for everything. The truth of the matter is that you need your own insurance policy to cover your possessions and additional living expenses if you need to move out due to the disaster. Just as important, renters insurance also provides you with liability protection if a third party is injured while visiting your home and decides to sue you in court. Instead of skipping out on the renters’ insurance policy in order to save money, it is a far smarter idea to save money by bundling multiple policies with the same insurance agent. For example, if you purchase a bundle of renters insurance, automobile insurance, and life insurance it will save you money on all three policies.
In conclusion, there are things that you can do in order to save money without scarifying insurance coverage. If you have any questions, please call (508) 831-0133 to contact an associate at Zawada Insurance. We are happy to walk you through the details of your insurance policies and explain your coverage options. We look forward to helping you with all of your personal and or business related insurance needs.