There are few areas of your life that insurance doesn’t touch – from where you live and what you drive, to your loved ones, human and four-legged alike! With all the different types of protection you’ll need, there are just as many insurance mistakes you can make, if you are not careful. Our experts are here to tell you about some of the most costly insurance mistakes and how to avoid making them!
Top Areas for Insurance Mistakes
Before diving into the most costly insurance mistakes, it’s important to understand the areas of insurance that pose the greatest potential for those errors. We will be covering the following areas:
Auto Insurance Mistakes
Home Insurance Mistakes
Life Insurance Mistakes
1. Improper Home Valuation
An all-too common insurance mistake among homeowners is improperly valuing your home. Think about it this way: homeowners’ insurance is designed to cover the cost of rebuilding, not the sales price of your home. Unfortunately, many homeowners fall prey to the money-saving logic of reducing their insurance when real estate prices go down. To avoid under-insuring yourself into a bind, aim to buy enough insurance to cover the cost of completely rebuilding your home and replacing your belongings.
2. Canceling Flood Insurance
Anyone who has dealt with flood damage knows how expensive and stressful the restoration process can be! Now, imagine going through the aftermath of flooding without any insurance to lessen the financial blow. Unfortunately, flood damage is not covered under most standard homeowners’ and renters’ insurance plans. However, there are options for coverage through the National Flood Insurance Program (NFIP). In fact, even some private insurance companies offer flood insurance.
Flood Fact
25% of flood damage occurs in areas that are considered low-risk for flooding! So, even if you live in a low-risk area, it’s smart to explore some coverage for the what-ifs!
3. Failing to Shop Your Auto Insurance
Another costly insurance mistake made by many is failing to shop your coverage! Since insurers tend to update their rates reguarly, you could unearth new opportunities to save or improve your current coverage by shopping your auto insurance with your agent. In fact, you may even find that you’re eligible for new discounts you weren’t previously able to utilize. As a general rule, make it an annual priority.
4. Only Buying Minimum Coverage
In most cases, there is insurance minimum that is required by your state. Whether it’s your auto, home, or RV policy, you’ll likely face that required minimum. However, this minum usually does not offer the level of coverage most people require. Rather than leaving yourself financially vulnerable by only buying the minimum coverage, work with an insurance specialist to build a custom plan that works best for you.
Pro Tip:
When it comes to life insurance, the rates will only increase the older you are. Don’t procrastinate – buy young and you will save on your policy!
5. Relying On Group Life Insurance
If you are fortunate enough to enjoy an employer-provided group life insurance plan, you should still explore more robust options. While group benefits are a nice perk, the amount of coverage offered in these plans is typically not enough for most people. Furthermore, coverage often ends if/when you leave the company, leaving you and your family at risk!
6. Choosing the Wrong Coverage
Whether it’s your auto, boat, RV, home, or life insurance, the right plan can make all the difference when life throws you a curveball. Without exploring your options, you could end up overpaying for coverage you don’t need or missing out on coverage you do need. To save time and money, work with an insurance specialist to help you customize your plan!
Avoid Insurance Mistakes – Work with Lifetime
The key to avoiding costly insurance mistakes is knowing what you need to be covered. At Lifetime, our experts take the time to learn about you, your lifestyle, your current needs, and your future goals to make sure your coverage serves YOU. If you’re ready to take some steps toward better coverage and greater savings, give us a call at (972) 771-2622 or visit our website!
Avoid Insurance Mistakes
Whatever your needs are, our insurance experts can help you find the perfect coverage to meet them!