It’s easy to make mistakes with insurance policies if you rush and sign them without fully understanding the details. Some people want to just get past it to meet a requirement of the state or their employers. Ultimately, you must be clear about what you’re signing to avoid the following common insurance mistakes.
- No Insurance –
Some people lack insurance out of ignorance or lack of internet access to search “insurance agency near me.” Others simply think they can beat the system until one day disaster strikes, and they find themselves in a financial fix as high bills roll in.
- Inadequate Insurance –
Many people aim to have the bare minimum insurance so that they can save money. In doing so without proper research, some people fall short of state, industry or company requirements.
- Over Insurance –
It’s possible to pay for too much insurance that ends up going to waste. Evaluate risks carefully and focus on the ones that are more significant than others. If there’s only a one in a million chance of a minor mishap happening, you don’t need to buy extensive coverage.
- Being Unaware of Discounts –
One of the best ways to get insurance discounts is to ask your insurance agent about them. Insurance firms normally don’t promote discounts, but your agent may discuss the ones available if you ask.
- Not Shopping Around –
People and situations change over time, which is why it’s a good idea to review your policy thoroughly every few years. Make sure your policy is up to date and fits your needs, otherwise move on to another insurer who is a better fit.
- Not Understanding Your Policy –
Insurance policies can be very complex and confusing if you’re not aware of how they work. It helps to talk with an insurance expert who understands your needs and is able to answer your questions. Be aware that when you raise your deductible, it lowers your monthly rate. However, sometimes cutting corners might lead to bigger bills than imagined should you ever file a claim.
- Opting for Group Life Insurance–
Talk with your employer about group life insurance to see if you can join the company plan. Find out about any other insurance opportunities your employer provides, then compare the rates with other insurance providers in your neighborhood.
- Discarding Long-Term Care Insurance –
Even though you should consider other options when it’s time to renew your healthcare insurance plan, sometimes it’s more economically feasible to keep your existing plan. Think about your health condition and how much healthcare you need over the next several years.
- Picking Policies Based on Premium –
If you only judge a policy by its monthly premium, you may be overlooking higher costs down the road. It could lead to higher copays for hospital visits, especially if you go to a doctor outside the policy’s network of specific healthcare professionals.
- Not Buying Flood Insurance –
Flood-related damage will never be covered by your home or renters insurance. You can either get flood insurance coverage from the National Flood Insurance Program (NFIP) or through some private insurers. Make sure to get this coverage even if you live in a low-risk area, as according to FEMA, 25% of all flood insurance claims come from such zones.
- Relying on Landlord’s Insurance-
If you live in a rented property, be it an apartment or condo, its wise to carry your own renters insurance coverage to protect your belongings. Your landlord’s policy will only cover the building’s structure and the shared areas. It won’t cover loss or damage to your belongings. Getting customized renters insurance will ensure complete protection to your prized possessions in the event of any mishap.
Whether it’s home, life, medical, auto, business, or any other type of insurance, you need to be aware of coverage requirements and risks. Contact our experts at CF&P Insurance Brokers to learn more about how to secure the appropriate insurance coverage for your needs.