If you own a home or commercial property, you will be required to have an insurance policy. But should you shop for an insurance policy based on the policy’s price … or the insurance coverage itself?
Oftentimes, insurance policies are an added expense, and individuals will try to cut corners by focusing on price rather than coverage. This is not necessarily the best way to shop for insurance because having quality coverage when you need it most is the primary reason to purchase an insurance policy.
When an accident occurs, the aftermath (repairs, personal injury coverage, etc.) usually exceeds the average deductible cost, while other times, the damages can cost less and may not even be worth filing a claim.
If you pay a low premium for your policy, you will likely have inadequate coverage, and you can wind up paying exponentially more when an unexpected accident or disaster occurs. However, it is possible to shop for insurance based on the policy coverage while remaining within your budget.
Shopping For Insurance Coverage
As you shop around for an insurance policy, you may be eligible for more comprehensive coverage than you anticipated.
When shopping for insurance coverage, rather than price, you should consider how much and the type of coverage you will actually need for full financial protection of your property. This can be done by assessing potential worst-case scenarios and the value of your property and belongings. For instance, if a fire occurred and caused damage to your property, what would the cost be to rebuild your property? The same holds true for water damage which can also result in large amounts to rebuild. What if cabinetry, closets, flooring and walls are damaged? This is very important to think about so you can secure the proper insurance coverage.
In order to respect your budget while focusing on coverage, consider your premium and deductible costs. A lower premium may look great at first, but it is often paired with a higher deductible, which could mean sticker shock, when it gets deducted from your insurance claim payment in the event of an insured loss. You are still responsible to make up that difference in your repair process.
Review Your Policy & Shop For Insurance Coverage
The insurance policy you choose should be based on the type of coverage you will need when you need it most. Take a moment to review your policy, either on your own or with a qualified professional. Our team at Reliant Insurance Adjusters offers a free review of your insurance policy. We can help you make sure that you do not have lower than expected policy limits, or exclusions, and determine if you may need to increase your coverage or shop for a new policy.
If possible, try to shop based on the insurance coverage rather than settling for the lowest premium possible. There are several insurance discounts and policy options available to meet a variety of budgets and coverage needs.
At Reliant Insurance Adjusters, we have seen numerous scenarios where people have selected insurance coverage based on a low premium, and when it comes time to file a claim, they have to face the reality of low policy limits, high deductibles, or no coverage at all.
If you have filed a claim and need an experienced insurance adjuster on your side, we can help. Contact us today for more information or an extensive policy review.