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2. Contents Replacement is not automatically covered 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.
3. All Earthquake deductibles are not equal
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:
- Dwelling Coverage: $250,000
- Contents Coverage: $175,000
- Loss Of Use Coverage: $50,000
Examples:
- Company A offers a 15% deductible on the dwelling coverage only.
The total deductible will be $37,500 ($250,000 x 15%).
- Company B offers a 15% deductible on the total combined limit.
The total deductible will be $71,250 ($475,000 x 15%).
- The difference can up to $33,000 in Earthquake coverage.
4. Guaranteed Replacement Cost does not guarantee your home will
be rebuilt
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.
5. Specialized hobby collections may have limited coverage
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.
6. All-Terrain Vehicles (ATVs) and Jet Skis are often excluded
under your standard policy
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.
Auto Insurance
7. Double your auto coverage without doubling your premium
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.
8. Consider a higher Collision deductible
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.
9. Consider a lower Comprehensive deductible
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.
10. Your Uninsured Motorist coverage should match your liability
coverage
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?
We believe it is better to understand your coverage before you
have a loss. Therefore, we 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. |
