Here’s a quick list of the top mistakes we often see when someone comes to us and asks us to review their personal insurance. The items are in no particular order:
Undervalued Home – The dwelling coverage amount on your policy needs to be enough so that you can rebuild your home from the ground up. If this coverage amount is too low, then you’re going to have to decide what features, or which room, you’re going to leave out when you rebuild your home. Keep in mind that in times of natural disaster the cost of building materials can increase by quite a bit. Better to have a little extra coverage on your home than not enough.
Jewelry and Fine Arts not Insured Properly – Every homeowners policy has a limitation on how much jewelry coverage it will provide. If the jewelry you own is worth more than this amount, you’ll need to add the additional coverage. There’s also some good reasons to insure your jewelry specifically – it will be described (and valued) up front so there will not be any dispute as to its worth at time of loss and you can pick up some additional coverages if you insure your jewelry specifically.
Auto Liability Limits too Low – The state of Ohio recently increased the minimum required amount of coverage, but in our opinion it’s still too low. The current limits are 25,000/50,000/25,000. That’s $25,000 liability coverage per person, $50,000 per accident and $25,000 in property damage you might cause to others. Why is it too low? Think about it – one life flight and you just used up the $25,000 for the first person. The $25,000 in property damage? When you shopped for a new vehicle last time, how many of the vehicles were worth less than $25,000 new? You don’t have to total all that nice of a car to hit $25,0000.
UM/UIM Coverage not taken or too low – This ties in with the point above. UM/UIM is Uninsured/Underinsured Motorists coverage. It’s insurance for you! Do you own a vehicle worth more than $25,000? If you do, there’s a good chance the person who hits you has state minimum limits. Anything above $25,000 you’re going to have to sue the person to get.
Deductibles Too Low – $250 and $500 deductibles became popular 30 or so years ago. They haven’t increased much since. That means you were assuming much more of the risk 30 years ago than you are today if you still have a $250 or $500 deductible. And you’re paying for it. You might be surprised at how much money you could save if you went with a $1,000 or $1,500 deductible. Insurance is supposed to for calamities. It’s ok if that deductible hurts a little at claim time, it’s supposed to and you keep lower deductible you’re still paying for it, it’s just part of your premium.
These and many more issues are what the insurance professionals at Community Insurance Group will be sure to discuss with you when you choose us for your personal insurance needs.