When in search of a new insurance policy, whether it be homeowners, auto insurance, commercial package policy or any other line of insurance, most clients are in search savings. The easiest way to know for sure that you are saving money is by requesting an Apples to Apples Comparison. While this is a good way to compare rates, it is not the best way to shop for insurance. Requesting an Apples to Apples Comparison eliminates an insurance agent's ability to provide you with a comprehensive insurance policy that mitigates exposure to loss.
While having a competitively priced policy is important, it is also important to realize that the insurance policy you are purchasing is protecting your most precious asset. Whether that asset is your home, your brand new car or your business, it is important that a full evaluation of your insurance policy is performed to make sure that the proper coverage is in place.
Where Could My Current Insurance Coverage Be Falling Short?
There are many different ways that an insurance policy can be short on coverage. First let’s take a brief look at your homeowner’s insurance policy. The first coverage on your homeowner’s policy is the dwelling limit. Often, the dwelling limit that is in place on a homeowner’s policy is not adequate to fully replace a home in the event of a covered, total loss. While it is unlikely that you will ever have a total loss of your home, it is important to have the proper limit of insurance in place. If you do not, you could lose thousands of dollars after a loss all for minute savings on your yearly bill.
Another important aspect of your homeowner’s insurance policy to consider is the Personal Liability Coverage. Personal Liability is often an overlooked coverage on a homeowner’s policy and is probably the most important coverage you have on your policy. Personal Liability Coverage protects you from a variety of different lawsuits, and it is relatively inexpensive to increase your limit from $100,000 to $300,000 or $500,000. It is important to evaluate how much you stand to lose in the event of a lawsuit and then pick the proper limit to fit your budget. An experienced insurance agent can help you to determine a good limit and can even provide higher limits if needed.
While there are issues with Apples to Apples Comparison with personal insurance, there are even greater issues when it comes to commercial insurance. Whether you are operating a contracting business or commercial property, it is really important that your insurance agent perform a complete review of your coverage at every renewal. A complete review will allow your agent to make sure that there are no changes in exposure or operations to ensure that you are covered properly. There are numerous ways saving a few bucks could cost you thousands of dollars in the long run when it comes to your commercial insurance.
One such way is not insuring your building or buildings for the proper amount. Underinsuring can result in co-insurance penalties at the time of loss. Co-insurance penalties reduce the amount that is paid out, after a claim by a percentage, depending upon how underinsured the building is.
Depending on the type of business you are in, there are many different enhancements that can be added to a policy to provide more comprehensive coverage. An experienced insurance agent might add a liability form that provides coverage for operations not covered under the standard policy form. If you store vehicles for clients, an agent might add liability coverage for storage of vehicles at your property. Another coverage that might be considered is for lawsuits brought by your employees for wrongful termination or sexual harassment. These kinds of coverages may cost a little bit more each year, but in the long run you will be happy that you do not have to come out of pocket for something that you thought was covered.
Insuring Your Home, Auto or Business Properly Could Save You In The Long Run
While getting the best possible price for your insurance is great, there isn’t much reason to get a cheap policy if you aren’t properly covered. Having an insurance agent perform a full evaluation of your coverage and providing a comprehensive insurance package may cost a little more upfront in some cases, but in the long run it will save you after a loss.