Insurance is something you need to consider carefully so that you can protect yourselves from various types of loss. The problem is, most policyholders don’t take the time to learn everything they should. This opens the door for common mistakes that could have been easily avoided. Talk to your agent and go over each of your policies. Ask questions and make sure you have a solid understanding, so that you don’t make avoidable mistakes.
Following are a few common insurance mistakes that you should avoid.
Car Insurance Mistakes
One of the biggest mistakes people make when it comes to auto insurance is purchasing only the minimum amount of coverage required by their respective states. This is rarely enough to cover even minor damages, causing you to be liable in the event of an accident. Another mistake is over-looking popular add-ons. Roadside assistance and car rentals can be very helpful, especially if you have a family.
Choose wisely when it comes to your deductible. You can pay more for your repairs or pay more for your monthly premium; the choice is yours. A lower deductible means higher premiums, while a higher deductible may make your premiums more manageable each month. Look closely to determine which outcome would be best for you.
Homeowners Insurance Mistakes
A common mistake that most homeowners make is insuring their home for its market value. This won’t be enough to rebuild it if something disastrous happens. Instead, you should purchase a policy that covers the cost of rebuilding. Know what your policy covers, and be prepared to buy a few additional policies to fill in gaps. This can mean flood, hurricane, and earthquake coverage.
Never underestimate the importance of creating a home inventory checklist. Make sure to create a video as well as a written copy. Give one to your insurance agent, store another copy digitally, and put the third copy in a safe deposit box. Your home inventory checklist should include all of your most valuable possessions as well as the information for each item, such as the serial number, model, and when it was purchased.
Commercial/Business Insurance Mistakes
When it comes to protecting your business, liability insurance is a must. Talk to your insurance agent about your company’s overall needs and make sure you have enough insurance to cover every aspect of your business. While it’s extremely important to make sure all of the gaps are covered, you don’t want to pay for policies your business does not need.
By working together, you and your agent can create a customized policy that is both effective and affordable. Different businesses will have different insurance requirements. Not every business will need fleet insurance, but every business may benefit from a commercial umbrella policy. Take a close look at your business needs, and then discuss the same with your insurance agent.
Don’t fall into the same traps everyone else does when it comes to insurance. Go over your policy carefully and correct any mistakes you may have made in the past. If you’re looking for more guidance related to your insurance policy, contact the experts at Scautub Agency in Scotia, New York. Our dedicated team is happy to help you with all your insurance needs.