Top 10 Insurance-Related Mistakes People Make
I am excited to start a blog for sharing my knowledge and experience that I have accumulated over the last 28 years of my insurance career. Making wise insurance and financial decisions can have a lasting impact on protecting your current family’s well-being as well as future generations. I will expand upon each of these top 10 insurance-related mistakes in the next couple of months. I hope you will find this information valuable and useful. We appreciate the continued support of our clients, referral partners, and friends over the years.
1. Carrying low liability limits and low deductibles on automobile insurance.
Typically, for most situations, it makes sense to carry higher liability limits (asset protection) and higher deductibles. You can typically have much better coverage for a similar amount of premium.
2. Buying a vehicle before looking into the cost of insurance.
This is especially true when you are purchasing a vehicle for a young driver under the age of 21.
3. Filing claims just over your deductible.
If you have a claim slightly over your deductible you should consider handling out of pocket if possible. Insurance rates can increase and also some insurance companies will cancel policies with multiple claims.
4. Not having a Personal Umbrella policy when you have a good income or a higher net worth.
The Personal Umbrella policy is one of the best values in the insurance industry for providing peace of mind and asset protection in today’s litigious society.
5. Buying GAP coverage from the dealer/bank/credit union to pay off of the difference between the loan and the value of the car in the event of a total loss.
Typically, insurance agents can provide that coverage for less than 25% of the cost of the dealer/bank/credit union.
6. Not carrying a sufficient amount of Coverage A on your Home policy to rebuild your house in the event of a total loss (fire/tornado).
7. Not replacing your roof with an impact-resistant shingle after a hail claim.
Not all impact-resistant shingles are created equally. Check out these testing results from the Insurance Institute for Business and Home Safety: https://ibhs.org/hail/shingle-performance-ratings/
8. Not documenting the contents/inventory of your home or business.
There are many applications you can use for a very minimal cost. My personal favorite is Nest Egg, which has a $3.99 one-time fee.
9. Not understanding the limitations in coverage on certain personal property items (Jewelry, fine art, collectibles, tools, etc).
You should read through or discuss with your agent what limitations there are for certain items and add coverage if needed.
10. Not buying enough life insurance to protect your family or business when you are young and healthy.
This is a great calculator for looking at life insurance needs for your situation: https://lifehappens.org/insurance-overview/life-insurance/calculate-your-needs/
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