The concept of it isn’t what you pay, but what you buy is a great concept to keep in mind when reviewing any purchase, especially insurance. While the cost is determined by the amount of coverage, other coverage choices have a significant impact on the cost of coverage. Coverage choices? What does that mean?
Insurance is a contract. If you want your policy to pay only in the event of a fire, wind loss, or smoke, it will be significantly less than coverage that pays for frozen pipes, ice dams, power surges, the back-up of a sewer or drain, etc.
Home insurance is one of the most complex insurance contracts we review. We spend a lot of time advising clients on all of the coverage options and the choices and risks of choosing, or declining coverage. Your home is, in most cases, your largest asset. Spend a few minutes making sure that the coverage will do what you want it to do when you need it to do it.
Do you have a finished basement? Buy coverage for the back-up of a sump pump. No finished basement? Think about eliminating that coverage. Do you carry coverage for power surges to electronics? If you don’t have this exposure, eliminate the coverage. Instead of reducing coverage, increase your deductible. Spend the time to tailor the coverage for you.
The deductible is the amount you pay in the event you have a loss. If you can save enough by changing the policy to the next higher deductible, take advantage of the savings. You do a better job of spending your money that anyone else.
Other questions? Please give us a call to review your coverages and your options.