Whether you run a small business out of your home or you are a partner in a larger corporation, understanding the importance of both business and commercial auto insurance is...
The following article Insuring your business and it’s vehicles. occurred first posted on the blog of http://signatureinsurancemi.com/
Owning a home is an amazing investment and a dream come true for many families. Once all the paperwork is finalized, the next step is shopping for homeowners insurance in order to make sure your investment is protected. Before purchasing a policy make sure you understand what type and how much protection you need. Do not make these common mistakes when shopping for the best homeowner’s insurance plan.
One – Underestimating the value of your property.
When determining how much insurance you need, think about how much it would cost to rebuild your home. If you have made updates to the property, make sure to include these additions. Then go throughout the home and take inventory of your belongings. We recommend recording a simple walk through of your house and your possessions once every couple of years. In case of a claim, the recording will give your insurance company a better understanding of your lifestyle as well as speeding up the claim process.
Two – Understand replacement vs. actual cash value.
Many homeowners do not understand the difference between replacement and actual cash value. Some policies will only pay you for what the item is worth at the time of the loss. If your electronics or appliances are old, you may not get much for them. This is the actual cash value. Replacement value is how much it will cost to buy new items. If you want enough coverage to buy a new item to replace the destroyed or damaged item, we recommend choosing a policy that offers replacement value instead of actual cash value.
Three – Knowing what a deductible is.
Many people don’t know what a deductible is; a deductible is the amount a person pays out of pocket in the event of a loss (fired, vandalism, theft, etc). For example, if there was a fire in a home that caused $40,000 in damage and the policyholder elected to have a $1,000 deductible then they would be responsible for the first $1,000 of damage and the insurance company would have a claims payout of $39,000. A person should set the deductible at an amount that they are comfortable with paying at the time of a loss, but also should acknowledge that the higher the deductible amount the lower the premium will be for the year.
Four – Comparing companies for the best rate.
Homeowners should compare several different quotes to find the best rate for home insurance. Not all companies are the same and some will offer discounts making the overall price much lower. You need to find a reputable insurance company that will provide great service for a great price. An alternative is having an insurance agent compare different insurance companies for you. At Signature Insurance, we pride ourselves in always checking every insurance carrier for the best possible rate while making sure we never sacrifice on coverage.
Five – Understanding exclusions.
Another problem many homeowners face is not understanding the policy exclusions. For instance, if your policy excludes floods but you live in an area that is prone to floods, then you should get a special policy to cover floods. Similarly, a policy may not cover trampolines, pets, or expensive jewelry. Make sure you fully understand what your policy will and will not cover. For this reason, it is important to fully disclose all of your home’s features and the items inside with your insurance agent.
For a more detailed explanation, please contact any insurance agent at Signature Insurance.
Top 5 mistakes made when shopping for homeowners insurance is a post from: http://blog.signatureinsurancemi.com
