Tax season is a great time to reexamine your financial risk with your insurance adviser. You may be wasting money on unnecessary coverage or not realize where you are vulnerable to serious losses. Solid advice from a Trusted Choice® insurance agency may save homeowners thousands of dollars by outlining which kind of coverage suits them. Here are a few key issues consumers may want to explore when deciding if the insurance coverage they have is really right for them.
At Risk: How could you be underinsured?
At least 60% of in-home entrepreneurs are not properly insured, according to an IIABA study. While a basic homeowners policy will cover personal property used at home for personal use, it won’t protect assets used in a homebased business.
People lucky enough to have high-profile jobs or accumulated assets should consider a comprehensive umbrella liability policy to protect against serious financial loss. A good umbrella policy can cost as little as $150 per $1 million in coverage and insures against personal liabilities, including car and home-related claims.
Children in college
An IIABA national survey showed that 80% of college students who rent housing for the school year may not have adequate coverage to protect their belongings when away from their primary residence.
Home renovation can leave homeowners vulnerable. One-in-four home remodeling projects increase the value of a home by more than 25%, but too few consumers consider increasing their homeowners insurance limits to reflect that increased value.
Saving Money: How could you be overinsured?
Deductibles are too low
The owners of an expensive home need to consider whether a low deductible makes sense. If someone steals the TV, it isn’t going to break the bank. Those same consumers need lots of insurance for a total catastrophe or if they get sued. Therefore, they may want to take a $1,000 deductible and use the savings, which can be 10 to 20%, and buy an “umbrella liability” policy to give them $1 million or $2 million of coverage in case they’re sued.