The only reason people skimp on insurance is to save money. We all want lower monthly budget expenditures. But at what cost does it come? Sometimes saving money in the short game doesn’t mean you save overall or worse that these small cuts could get you into some seriously hot water financially should an incident occur and a claim need to be submitted.
#1 Especially here in Florida – Not obtaining or dropping flood insurance coverage. Many people will wrongly assume that because they have a homeowners policy they would be covered should a flood ravage their property. You also may not be aware of what flood zone you reside in. The fact is that flood damage is not covered under a normal homeowner policy. Separate coverage from NFIP (the National Flood Insurance Program) is needed.
Before you sign on that dotted line and buy your home check the flood zoning. Living in lesser flood-prone zones can reduce your insurance rate drastically.
#2 Skating by on only the state-mandated car insurance limits.
The state minimum is just what it reads… the bare minimum. This type of policy gets you legally on the road, but it sure doesn’t offer much protection. You can still be easily sued for any damages or suffering above and beyond what your policy will pay out should you be in an accident where the other party sustains injury and you will likely have to pay out of pocket for some of your own repairs or medical bills as well. Cheaper isn’t really cheaper.
#3 Not getting renter’s insurance. This is just as important as someone who owns their home. Just because the structure isn’t yours, doesn’t mean your possessions aren’t valuable. If something were to happen to your building or theft or fire occur, you may need the renter’s insurance policies ability to cover temporary housing and replace your possessions. Even if someone is injured in your home and decides to sue a renter’s policy would have you covered.
#4 Insuring for current real estate value rather than cost to rebuild. It’s a common misconception that when the market is down its a good time to lower the policy on the home to save some money. The problem is through the market fluctuates, building and repair costs don’t. Make sure you insure enough to rebuild should the worst happen. A better way to save money is to raise the deductible. It could save you up to 25%!
For insurance policies and advice you can trust, call us, Centennial Insurance Services.
(239) 247-5125 www.cisinsfl.com. Give us a call today for your free no obligation quote!