Most people rely entirely upon their insurance agent to provide them with the coverage they need. However, even the best agent may not be aware of your particular needs and you may not find out there is a problem until too late. Here are some tips to consider when buying insurance:
- Always ask questions if you do not fully understand what you are buying. If you are not clear about your coverage conditions or the amount of your insurance policy limits, speak up and ask your agent.
- When buying life insurance, consult with your attorney to be sure that the policy is consistent with your estate planning needs.
- Be sure you understand when your life insurance premiums may be increased or how coverage may end before you die.
- Purchase adequate liability limits for your auto insurance policy. For example, if you have savings and a home worth $500,000, you risk losing these assets if you only have an insurance policy with $100,000 in assets. We recommend at least $300,000 limits as a starting point.
- Check to be sure that your insurance will cover you while driving a rental car. Many policies will not provide coverage unless your regular automobile is being repaired.
- Uninsured Motorist, Underinsured Motorist and Medical Payments coverage is relatively inexpensive and protects you if you are injured by an uninsured driver or a driver with low insurance limits.
- If you will be towing a camper or trailer, be sure that your policy provides coverage.
- When purchasing homeowners’ insurance or hazard insurance, shop around to see if you can obtain replacement value insurance. It will often avoid litigation over the value of your home and can save you significantly in case of a loss.
- If you have valuable jewelry or collectables, ask your agent if you need a scheduled property endorsement to provide sufficient coverage for these items.
- If you will be conducting a business out of your home or storing business equipment at your home, your homeowners’ policy may not provide coverage for business losses. Ask your agent if you need an endorsement or additional policy.
- Keep an inventory of your home contents with photos or movies and update it regularly. Keep the inventory in a bank safety deposit box or somewhere other than your home.
- When buying health insurance, the best policy is “when in doubt, disclose.” In other words, it is better to err on the side of giving too much information about your health than too little. Use additional pages if necessary. When a claim for cancer or a major medical event is made, some companies scrutinize your application to see if they can find a reason to deny coverage.
- Talk to a lawyer if you want to appeal an adverse decision by your health insurance company. There are deadlines in many policies that can easily be missed.
- Look into an umbrella policy. This kind of insurance provides broad protection in addition to your business or home liability policy and your car insurance. It is usually quite inexpensive and offers greatly increased limits in most cases.