Insurance can be confusing, so here’s a list of dos and don’ts when purchasing insurance:
1. Don’t choose an insurance company only based on price
- Price is important, but not at the expense of coverage and customer service. If you have a claim and you find out that you don’t have the correct coverage you need or thought you had, you could be stuck with the cost. In addition, when you need to file a claim or change your policy, you will be a happier client if your company is easy to get ahold of and treats you like family- not just another paying customer.
2. Always insure homes for the cost of reconstruction – not real estate value
- Just because real estate prices drop, does not mean the cost to rebuild your house drops. Building materials may increase in price from when the home was originally built, so it takes more insurance to be able to cover reconstruction costs.
3. Don’t assume the legal limits for auto insurance will be enough
- Since the legal requirement on car insurance is minimal, you may have to pay more out-of-pocket if you are in an accident— especially if you severely hurt someone or cause major damage to someone else’s vehicle. For example, if you hit and total a new truck or SUV and only have $25,000 of coverage (which are the Missouri minimums), you would be stuck paying the difference for what it costs to replace their vehicle.
4. Not getting renters insurance
- If the place you rent has a fire, tornado, or something that damages your personal belongings, renters insurance is what protects your belongings. Most people assume that the person who owns the home or apartment would be responsible; however, this is not true. This also gives you protection if someone is injured in your house and sues you, renters insurance also provides liability protection.
5. Don’t get rid of flood insurance
- Even if you don’t think you are at risk for flooding because of the area you live in is only a “low-risk” flood zone, get flood insurance. Many people in these areas considered “low-risk” still experience flooding. Most homeowners and renters’ policies do not cover flooding, so it is important to ensure you have the coverage you need if you live in a flood zone.
For more information, visit our social media!