Tips to Think About When Evaluating Your Personal Insurance Needs
•1. Purchase Umbrella Coverage.
"I advise my clients to purchase Umbrella insurance-it's one of the most important coverages available. You never know when an everyday occurrence, such as a car accident, may turn into a liability suit. Make sure you have an adequate limit of liability. In the event of a loss, your home, cars, savings, treasured possessions and future earnings could be at stake. Lastly, ask how a claim will be handled or in other words, who provides your defense in the event of a lawsuit."
•2. Maintain Adequate Limits of Homeowners Coverage.
"Surprisingly, many homes are not adequately insured. The most common mistake is confusing the market value of a home with its replacement cost. You don't want to wait until a loss occurs to find out that your policy limits don't cover the cost to rebuild your home and replace your possessions. Some of the carriers I work with provide complementary home valuations to help determine the appropriate replacement cost of a policyholder's home."
•3. Find A Homeowners Policy That Includes 150-200% Extended Replacement Cost.
"Extended Replacement Cost means the insurance company will pay the cost to rebuild your home up to 200% of the limit, even if the cost to rebuild is greater than the amount of coverage. This is important "sleep easy" coverage. Over the past few years, some of the larger insurance companies have reduced the extended replacement cost amount. For some of the homes with unique architecture, or upgraded improvements this can be an essential coverage. I recommend that homeowners check their policy to determine if a 150-200% Extended Replacement Cost is included. If not, it's worth the effort to find a carrier that does."
4. Select A Deductible That Best Meets Your Need.
"I often suggest that clients who are looking to lower their annual insurance premiums consider taking a higher deductible. This is particularly true of those clients who can afford to pay a larger share of a claim. With a high deductible, the savings can be significant." This limits small claims, which raises premium.
5. Obtain A Special Policy for Your Valuable Articles
"Many clients mistakenly believe that all of their valuable items are covered under their Homeowners policy. In fact, there are typically policy limits that don't provide full coverage for jewelry, silverware or other collectibles. To ensure proper protection, I advise my clients to purchase a separate policy."
To received a complimentary comparative analysis, please call Cindy Holland at 916-919-3005 or e-mail cholland@costelloandsons.com.
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