5 Big Insurance Mistakes

TRYING TO SAVE MONEY? AVOID THE FIVE BIGGEST INSURANCE MISTAKES.

With far too many Americans out of work, and others forced to make ends meet with less money, many people are looking for ways to cut costs. There are smart ways to save on home and auto insurance; however, there are also mistakes that can result in being significantly underinsured.

When money is tight, it is extremely important to be financially protected against a catastrophe with the right amount and type of insurance by taking a few simple steps, it is possible to cut costs and still be protected should disaster strike.

Following are five of the biggest insurance mistakes that consumers should look out for:

Insuring a home for its real estate value rather than for the cost of rebuilding. When real estate prices go down, some homeowners may think they can reduce the amount of insurance on their home. But insurance is designed to cover the cost of rebuilding, not the sales price of the home. You should make sure that you have enough coverage to completely rebuild your home and replace your belongings.

A better way to save: Raise your deductible. An increase from $500 to $1,000 could save up to 25 percent on your premium payments.

Selecting an insurance company by price alone. It is important to choose a company with competitive prices, but also one that is financially sound and provides good customer service.

A better way to save: Check the financial health of a company with independent rating agencies and ask friends and family for recommendations. You should select an insurance company that will respond to your needs and handle claims fairly and efficiently.

Dropping flood insurance. Damage from flooding is not covered under standard homeowners and renters insurance policies. Coverage is available from the National Flood Insurance Program (NFIP), as well as from some private insurance companies. Many homeowners are unaware they are at risk for flooding, but in fact 25 percent of all flood losses occur in low risk areas.

A better way to save: Before purchasing a home, check with the NFIP to check whether it is in a flood zone; if so, consider a less risky area. If you are already living in a flood zone area, look at mitigation efforts that can reduce your risk of flood damage and consider purchasing flood insurance.

Only purchasing the legally required amount of liability for your car. In today’s litigious society, buying only the minimum amount of liability means you are likely to pay more out-of-pocket—and those costs may be steep

A better way to save: Consider dropping collision and/or comprehensive coverage on older cars worth less than $1,000. The insurance industry and consumer groups generally recommend a minimum of $100,000 of bodily injury protection per person and $300,000 per accident.

If you don't own your home, neglecting to buy renters insurance. A renters policy covers your possessions and additional living expenses if you have to move out due to a disaster. Equally important, it provides liability protection in the event someone is injured in your home and decides to sue.

A better way to save: Look into multi-policy discounts. Buying several policies with the same insurer will generally provide surmountable savings.

Contact

J. Edward Knight & Co.
157 Townsend Avenue
Boothbay Harbor, ME 04538

Office Hours: M-F 8am-4:30pm
Tel: (207) 633-4423
Toll Free: (800) 898-4423
Fax: (207) 633-7151
After Hrs Claims: (207) 380-0009
Email: info@nulljedwardknight.com

Location Finder:


Boothbay Harbor, ME New Harbor, ME Vinalhaven, ME Rockland, ME Bath, ME

Recent Posts

Prepare Yourself for IRS Phone Scams Your phone rings. When you check, the caller ID shows it’s the IRS calling. (Three letters that can give you a sinking feeling in the [...more]
VIEW THIS POST → It’s Tax Season. It’s Also IRS Phone Scam Season.

The warm days and cool nights of autumn will soon arrive along with those beautiful leaves that we all enjoy so much. As majestic as those trees look while the [...more]
VIEW THIS POST → Burn, Rake, or Mow? A Seasonal Question?

It's dark, and the sidewalks are full of young kids walking up to every house on the block and declaring, “trick or treat!” — all while wearing masks. Sounds like [...more]
VIEW THIS POST → Keep Your Trick or Treaters Safe This Halloween

With football season already upon us, can winter heating season be far behind? Whether you are maintaining a home heating system or equipment at your business, preventive maintenance is important, [...more]
VIEW THIS POST → Heating Systems Need Preseason Maintenance & Inspection

Do you have a young adult attending college? College can be a fun time for the student but a stressful one for the parent. Reduce some of the stress by planning [...more]
VIEW THIS POST → Protect Your College Student’s Possessions


Site Translator


Subscribe For Updates

Don't Miss It: Signup for our e-list and we'll automatically send you occasional updates about new items posted to our site.

When signing up you will initially receive a confirmation email requiring your approval to complete the registration. Our strict privacy policy keeps your email address 100% safe & secure.