By Taylor Swyers
When purchasing a new insurance policy, common mistakes may cost the insured when it is time to make a claim and collect on a policy. Often, customers look for the lowest price without considering what plans meet their needs and choosing insurance that adequately covers them and their loved ones.
Here are a few tips on how to get the best cost and value when buying insurance and what to avoid, according to the Insurance Information Institute.
Insure your home at the cost of rebuilding.
Make sure you know your home’s current cost for rebuilding and whether that is the amount you are covered for – replacement value. If not, make sure you can readily provide the difference in the event of a severe incident such as a tornado, fire, etc.
Do not select an insurance company on price alone.
People often settle for insurance from a company by finding the lowest prices. Take a step back before buying and ensure they meet your specific needs. Everyone’s situations are different. This does not mean that your insurance has to be expensive; it means that there is more to it than price. Your agent matters. Check online reviews and ask for referrals.
Know your environment.
Many people do not realize that flood insurance is not included in homeowners insurance. If your home floods and valuables get ruined, they will not be covered. This is an example of needing to know your environment if you live in an area susceptible to flooding.
Evaluate your car insurance.
It is easy to purchase the minimum insurance policy for your automobile, but this can lead to problems later. You will most likely have to pay out-of-pocket for any damages to your car because the minimum does not cover that much. Make sure to check with your insurance provider.
Buy renter’s insurance.
People often skip over renters insurance and regret it later. Renter’s insurance covers your possessions in your leased home. It also covers additional living expenses if you move out of your leased space due to an unexpected insured disaster or circumstance. Also, renters insurance provides liability protection if someone is injured in your leased home and decides to sue.
Need help? The TrustPoint Insurance & Real Estate team is ready to answer your questions!