Are You Under-insured?
In all honesty, how carefully do you check the details and content of your insurance policy? If you’ve answered “not that much” then please continue reading!
With our busy post-millennial schedules, and hectic work and personal lives, the sad truth is that many people don’t carefully review their insurance policies. Sure they look at the premium cost, and maybe a few details, but many people don’t fully read – and therefore understand – the coverage details included with their policies. And when they do come around to reading the details, it’s usually right after a fire, accident, and other loss and then they want to see what’s covered. Sadly, if you find a problem or coverage issue at that stage it’s too late.
A recent study highlighted that many American’s lack sufficient insurance coverage, and as a result are at tremendous risk of being unable to rebuild or replace their property or belongings in the event of a loss. Many believe that, as long as they have coverage, they have nothing to worry about. The truth is that all insurance policies have limits on coverage, and quite simply if the cost of replacing or repairing your covered property is more than your coverage limit, you will be left to make up that difference on your own.
For example, if you check your auto insurance policy, and your property damage limit is $10,000, and you rear-end a vehicle and the accident results in $18,000 in damage to the vehicle you hit, you may be responsible for the $8,000 in uncovered losses from that accident. Similarly, if you own a business and have $150,000 in building coverage, and the result of a fire translates to reconstructing your building at a cost of $350,000, are you prepared to foot the extra $200,000?
Too many families and business owners focus just on the cost of their premiums, and don’t pay nearly enough attention to the details of their coverage. Being “under-insured” is a real concern, and one that everyone should discuss with us at the time of your renewal, or when purchasing a new policy.
Also, take the time to read your insurance policies carefully, so that you fully understand what is covered, what is not covered, and what insurance limits are in place. Just having insurance coverage is not enough. You need to have the right coverage for your own particular risks.
Additional Tips For Getting To Know Your Insurance: