Most people don’t read the fine print when it comes to signing contracts or policies and this can land you in a lot of trouble down the road finding out you have agreed to or missed inclusions that were or were not ever needed.
While it is our job as your insurance agent to put together the best proposal possible based on your needs for home, life, or business based on your situation and finances, you should always read and understand any policy before agreeing to and signing on it.
We have compiled a list of the most common insurance mistakes many people make, as well as how to avoid them:
FLOOD INSURANCE: Many homeowners overlook purchasing flood insurance. Let’s face it, this is Florida. We live in the tropics. Weather can be unpredictable and even dangerous. Flooding and water damage are a big part of that. Whether you think that your homeowners’ insurance policy already covers flood damage, or you feel that flood insurance is unnecessary because you live in a higher flood zoned area, you will likely regret this decision should the rains come. Flooding and hurricanes can’t read a zone map and often overstep their estimated reach!
TOTAL COVERAGE VALUATION INCORRECT: Home buyers who have experienced a decrease in their home’s market value incorrectly believe that as a result, they should mirror their homeowners’ insurance coverage. Please take this piece of advice as us waving a giant red flag. This mistake could leave you financially ruined since your policy will no longer cover the amount it would take to rebuild after a hurricane or other natural disaster.
JUMPING ON THE CHEAPEST PRICE QUOTE: Going with the lowest price is tempting. We all want to save money. But saving money on a badly designed policy will almost surely cost you down the road. You want to find the best price, but with the right insurance provider who will be there with you through each claim and each renewal.
ONLY CARRYING THE MINIMUM AUTO COVERAGES: While, yes, each state mandates a minimum auto insurance liability level it doesn’t mean carrying that will help you much in the event you are in an accident. It only makes you legal to drive. Should you be involved in a serious accident especially one involving multiple cars your minimum coverage will fall short and that leaves you on the hook legally to pay the difference which could be very high.
RENTER’s INSURANCE: Whenever you are renting, you must purchase renter’s insurance. This is an inexpensive insurance policy that provides you with optimal protection from a variety of perils.
Contact Chris Boston of Centennial Insurance Services of Southwest Florida for all of your insurance needs. These very common insurance mistakes are preventable if you have the right insurance policies through Centennial Insurance Services. www.cisinsfl.com (239) 247-5125.