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Ten things you should know
about your insurance… |
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but have never
been told. |
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As we review coverages with potential clients, many are amazed
to find that they have significant gaps which can leave them
open to potentially devastating financial losses. The list
below represents some of the more common issues we see when
reviewing policies.
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Homeowner, Condominium, and
Renter Insurance |
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1. Limited coverage for theft of jewelry. |
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All policies have a limit on the theft of jewelry. Most
policy limits typically range from $500 to $2,500. If your
jewelry is worth more, you may need to add jewelry floater
coverage to your policy. |
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2. Contents Replacement is not automatically covered.
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Policies without this coverage only provide reimbursement
for the value of your belongings in their “used” condition
prior to the loss. Contents Replacement coverage will
reimburse you for the cost of new similar quality items if
they are replaced. Some insurance companies only offer this
coverage if requested. |
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3. All Earthquake deductibles are not equal. |
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Some companies determine the
deductible as a percentage of the dwelling (building) coverage
limit, while others determine it as a percentage of the
combined total of the dwelling, contents, and loss of use
coverages. For example: |
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Dwelling Coverage: $250,000 |
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Contents Coverage : $175,000 |
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Loss of Use Coverage: $50,000 |
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Examples: |
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Company A
offers a 15% deductible on the dwelling coverage only. The
total deductible will be $37,500 ($250,000 x 15%). |
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Company B
offers a 15% deductible on the total combined limit. The
total deductible will be $71,250 ($475,000 x 15%). |
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The difference can up to
$33,000 in Earthquake coverage. |
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4. Guaranteed Replacement Cost does not guarantee your
home will be rebuilt. |
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The insurance company must know about the features of your
home to cover them after a loss. For example, if you upgrade
your kitchen to higher grade cabinets, counters, flooring, and
appliances, the replacement cost of your home will increase.
If you do not let your insurance carrier know about the
improvements, they may not be covered. You should report any
remodels or upgrades to your insurance company. |
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5. Specialized hobby collections may have limited
coverage. |
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Sports cards, memorabilia,
stamp, coin, and guns are some of the items that typically
have limited coverage. Coverage may range from $100 to $2,500.
Collections of higher value need more coverage to be
adequately protected. |
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6. All-Terrain Vehicles (ATVs) and Jet Skis are often
excluded under your standard policy.
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There are two exposures to consider. Coverage is needed if
the vehicle is damaged or stolen. Coverage is also needed for
any liability resulting from your operation of one of these
vehicles. Specific policies or endorsements are available to
address both issues. |
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Auto Insurance |
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7. Double your auto coverage without doubling your
premium. |
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Most people do not have enough liability coverage on their
auto policies to protect their current assets and future
incomes. Once your insurance limits are paid, you become
personally liable for any difference. We can show you how
higher liability limits will not dramatically increase your
premium. |
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8. Consider a higher Collision deductible. |
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Collision coverage represents a large portion of your
premium. Therefore, taking a higher deductible can have a
substantial savings impact. If you don’t report small
collisions to avoid rate increases, paying for a lower
deductible may not be to your advantage. We can show you if a
higher deductible makes sense. |
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9. Consider a lower Comprehensive deductible. |
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Comprehensive claims include theft, fire, broken
windshields, flood, falling objects, and vandalism, among
others. Most companies will not increase your rates after a
Comprehensive claim so there is no penalty for filing a
smaller claim. Comprehensive premium is much lower than
Collision, so it does not cost much to carry more coverage.
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10. Your Uninsured Motorist coverage should match your
liability coverage. |
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Uninsured Motorist provides coverage for you and your
passengers should you be injured by someone without insurance.
Uninsured Motorist coverage also provides coverage if someone
injures you or your passengers but does not have enough
insurance to cover the injuries and related expenses.
Even with medical coverage, Uninsured Motorist coverage can
reimburse you for lost income, additional costs incurred, and
pain and suffering that you would be entitled. Why would you
want to cover someone for a higher limit (liability coverage)
than you would for your own family? |
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We believe it is better to understand your coverage before
you have a loss. |
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offer complementary reviews and evaluations to help you
understand those areas where you may be exposed. Please feel
free to contact us to set up an appointment. |
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