Have you ever purchased personal insurance and when you finally have to make a claim, you realize you made a mistake? This happens more often than not and we’re here to help address the five most common mistakes when buying personal insurance.
Not reviewing your policy once a year
Once a year, you should review your policy for any changes that happened over the past year. Changes include family changes (marriage, divorce, children, adult children), job changes, changes in debts owed, etc. This will help your agent get a better understanding of your current situation and help with any improvements to your personal policy.
Not buying renter’s insurance
Not buying renter’s insurance is a common mistake across the board. You may think that because you are not the homeowner that you won’t need insurance. But renter’s insurance covers the cost of your possessions in case of disaster and living expenses due to these disasters. It also can give you liability protection for anyone injured in your rental space.
Buying the wrong amount of life insurance.
The general rule of thumb on buying life insurance is 5 to 10 times your salary. But people commonly forget to take in what’s needed after you die. If you’re a sole earner with a spouse and children, this amount might not be enough to cover their needs as opposed to other couples earning their own income and have no dependents.
Insuring your home for it’s market value
Some people insure their home for the amount they bought it, market value, and forget to add the cost of rebuilding the home in case it’s destroyed, the replacement value. The difference in these two policies also affect what kind of damage and replacement coverage you receive inside the home as well.
Paying for Extras
Read your policy closely and eliminate any extras you don’t need. Extras such as: gas leak coverage when your home is all-electric; dog bite coverage when you don’t even own pets; and hurricane coverage when you live in a landlocked area. For further information about personal insurance and getting help reviewing your policy, we’ll be happy to help.