It may seem tempting to only buy minimum coverage or jack that deductible up to the max when playing with the numbers but it’s important to be realistic. Should an accident occur could you manage to easily pay $1,000 out of pocket, or would that hamper your ability to get your vehicle fixed?
If the answer is it could break the bank, don’t do it. The same goes for all of the other coverage options. Saving a little month to month is nice but not worth it should you have an accident and suddenly what you need covered isn’t.
Worse yet, you could be left on the hook for your own or the other parties medical bills and repair contracts if your coverage limits are set too low.
What do we mean?
Well say you are involved in an accident and found at fault. Your coverage limit for damage was $25,000 and you just crashed into a BMW. You could easily be looking at a gap, if totaled, of double that. Where will that come from? – It can be taken to court and a judgement could be issued against you. If you are financially unable to pay at the time your wages may even be garnished.
Home Insurance: When it comes to homeowner’s insurance one of the biggest traps people fall into is insuring the home for the real estate value rather than the actual cost should you need to rebuild. Just because the market fluctuates doesn’t mean that your insurance policy should. This way of thinking applies to renter’s insurance as well. Make sure you are insuring the replacement value not the devalued “we have had this TV for 4 years” value model.
Dropping Flood Insurance: This is a huge error some Floridians make in order to save a few bucks. We may go years without a storm that floods but sooner or later, a hurricane is going to hit land and hover. That means flooding. If you do not have a specific flood policy in place, you better be ready to come out of pocket with a hefty chunk of change to rebuild and replace.
Selecting your Insurance Company solely on Cost: All insurance companies can look the same on paper. But the proof is in the pudding. When it comes time to make a claim how will you be treated? Will your claims be approved or rejected and you will have to fight for what should be easily written up as a check?
At Centennial Insurance Services in Fort Myers, Florida we pride ourselves on outstanding customer service. We treat our clients as we would our own family. We care about you, your life, and how our policies come into play to help protect your way of living.
Give us a call today at 239-247-5125 or visit us online to learn more www.cisinsfl.com.