A recent insurance industry survey found that an astonishing 21% did not have the right home insurance protection, nor did they know better protection was available for a marginal amount more.
They were putting their home and themselves at risk, paying too much, too little, or over-insuring themselves. There was very little accurate assessment of personal needs. In the case of a disaster, they could be in for a surprise. They may end up learning that their protection is not adequate. In other words, they could be unable to replace their current home, or their current possessions.
The Costs of Risking it All
People would like to pay nothing and have the best coverage but that is not reality. What is needed is an honest evaluation of your current situation and where you would be in the event of a disaster. Each individual has their own risk tolerance. And oftentimes, the true replacement costs and facts are not considered soberly. It’s not uncommon to completely discount even the potential for an unforeseen personal disaster.
The Largest Investment of our Lives
Our most significant investment is often our home. And we spend a great deal populating our home with items that make our lives more comfortable. This items need to be protected. But it should be the right protection at the right price.
Research shows that apathy could be costing us when it comes to home insurance. We simply accept renewal quotes, rather than comparing rates and coverage.
The Proper Coverage is There for You
Examine your policy with some attention. Talk to your insurer until you have a really good sense of how your coverage protects you. First, you always get clarity when you write something down. Document your questions and your provider will likely take more time and attention to answer your questions.
Don’t leave it to chance. Get the proper replacement costs the first time. If you are considering upgrades or renovations in the next year, advise your insurance provider and get some feedback. Don’t risk invalidating your policy. Make sure it is okay to go ahead with the proposed changes under your current policy. There is no point jeopardizing your current home insurance coverage.
Check Your Coverage at Renewal Time
Be sure to check each year if you coverage is still right for you. Has anything new come up that should be considered? One size doesn’t fit all with home insurance. Do your best to get your coverage right. And be sure not to overpay.
A Comprehensive Policy is the Way to Go
Two outdated polices, named-perils and broad-form policies, continued to be offered and should be avoided. Comprehensive policies offer the best overall protection. If you have a higher risk home that doesn’t qualify for a comprehensive policy, then you may ned a broad-form policy.
By Brooklyn Corey