Purchasing insurance can be confusing.
It’s easy to make the mistake of assuming that the best price is always the best deal, or to cut corners on policies to save a few dollars.
While it may be tempting to go with a policy that has lower premiums, it’s important to make sure the policy you choose has enough coverage for your needs. It’s also a good idea to pay attention to the deductible, as this is the portion that you will be responsible for paying when you make a claim.
In order to make purchasing insurance easier, and to help you make sure you choose the right policy for your needs, here are a few common insurance mistakes that you should avoid making.
Home Insurance: Insuring at Market Value
When it comes to purchasing home insurance, insuring your home at market value is not always the best option. Should something happen to your home, and you have to rebuild, the market value will most likely not cover the all of the costs involved with rebuilding. Instead, make sure you choose a policy that includes an “insured-to-value” clause, which will cover the costs of rebuilding.
Forgoing Flood Insurance
It’s important to note that your standard home insurance policy doesn’t include flood insurance. If you live in an area that is prone to flooding it may be worthwhile to purchase flood insurance.
Auto Liability: Purchasing the Minimum
Purchasing the minimum amount of auto insurance is a good starting point, but not necessarily the amount of insurance that you will need. Often, just taking out the minimum liability will not cover all of the costs involved in the event of an accident. Consider taking out both comprehensive and collision coverage for your vehicle, and higher liability coverage.
Forgoing Renters Insurance
As a tenant, it’s important to note that your landlord’s insurance policy won’t extend to provide coverage for your belongings. Renter’s insurance policies are relatively cheap – you can’t afford to not purchase one.
To find out more about Texas home insurance policies, or to see how affordable an insurance policy can be, contact Insurance Agency Texas today.