Five Major Insurance Mistakes to Avoid

Five Major Insurance Mistakes to Avoid

Insurance protection is vital for inevitable losses or damages to your property. Don’t risk being underinsured just to save a few dollars. Avoid unnecessary financial hardships and headaches by educating yourself about five insurance mistakes to avoid:

Not familiarizing yourself with insurance terms and terminology.

Take time to read and understand all insurance policies that you are considering. Learn standard terminology in order to make decisions with confidence. Turn to insurance professionals for guidance and answers to your questions.

Not doing your homework when selecting an insurance company.

Though cost is a factor in the insurance selection process, there are many other essential considerations. Look for a financially healthy company known for providing superior service. Research prospective companies through independent rating agencies such as Moody’s or A. M. Best. Seek recommendations and feedback from family members and friends about their insurance experiences.

Failing to adequately protect your home in the cost of repair or replacement.                                                                                                                                            

Don’t equate current real estate value with replacement cost. Resist reducing your coverage in reaction to a drop in real estate assessments or prices. Make sure that you have ample coverage to replace all lost items and completely rebuild your home, despite the current real estate market.

Assure that your home is fully insured by learning the facts about flooding insurance. Flooding is a common, devastating condition not covered by standard renters and homeowners policies. Protect yourself from this common gap by obtaining coverage from the Flood Insurance Program (NFIP) or specialized private insurance.

Only carrying liability coverage on your vehicle.                                                        

Minimum legal vehicle coverage is not designed to adequately cover repair or replacement in the event of an accident. You run the risk of eventually paying huge out-of-pocket costs. Potential lawsuits also threaten your financial security.

Only drop collision or comprehensive coverage on cars worth less than $1,000. Be sure to carry minimum protection of $100,000 for bodily injury and $300,000 per accident.

Neglecting to buy renters insurance.

Never overlook carrying renters insurance. This vital policy covers living expenses and  losses due to disaster or theft. Renters insurance also offers liability protection from lawsuits.

By studying these common pitfalls, you understand the five insurance mistakes to avoid. Instead of failing to obtain adequate insurance for any situation, attain multi-policy discounts by bundling several forms of insurance together.

Let our experts at Northeast-MetroWest Insurance Agency partner with you in making the best insurance decisions. We represent over 25 insurance carriers, enabling us to identify the ideal fit for your situation. Check out our Facebook page to learn about our services, or contact us for more information.

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