Over the Memorial Day Weekend, I was having a brief chat with some colleagues of mine concerning both sides of the insurance world, the agents and the consumers. CNN Money offers 8 tips and facts of the insurance world:
- You’re a statistic.
- Know your home’s value.
- Insurers differ.
- Don’t just look at price.
- Go beyond the basics.
- Demand discounts. Insurers provide discounts to reward behavior that reduces risk.
- At claims time, your insurer isn’t necessarily your friend.
- Prepare before you have to file a claim.
To an insurer, you’re not a person; you’re a set of risks. An insurer bases its premium (or its decision to insure you at all) on your “risk factors,” including your occupation, who you are, what you own, and how you live. The balance will come into play when you find an agent that sees you as an individual with needs and questions, and tries to craft a policy around your personal needs. Find an agent you can trust.
Before you choose a policy, it is essential to establish your home’s replacement cost. A local builder can provide the best estimate.
As with anything else you buy, what seems to be the same product can be priced differently by different companies. You can save money by comparison shopping, which is why good agencies (like the good folks at Dagley Insurance) will shop your quote with several different companies to find the policy that’s just right for you.
A low price is no bargain if an insurer takes forever to service your claim. Research the insurer’s record for claims service, as well as its financial stability.
A basic homeowners policy may not promise to entirely replace your home.
However, Americans waste some $300 million a year because they forget to ask for them!
Your idea of fair compensation may not match that of your insurer. Your insurer’s job is to restore you financially. Your job is to prove your losses so you get what you need.
Keep your policy updated, and reread it before you file a claim so there are no surprises.
