Thanks in large part to the estimated $12.5 BILLION that insurance companies will spend in 2022 on advertising, consumers are led to believe that getting insurance is fast and easy and that it will always result in cost savings. National ad campaigns may be entertaining and humorous. At best, unrealistic expectations and an oversimplification of the process can cause frustrated consumers. At worst, a consumer risks becoming underinsured. Our agents shared five things you should know about insurance.
A Home Policy Doesn’t Cover Normal Wear and Tear
Home insurance does not cover preventive maintenance. Repairs and upkeep are the responsibility of the home owner. For example, a dying tree that is about to fall on your garage is your responsibility to remove before it falls. However, insurance would help pay for repairs if a tree were to fall on your roof during a storm.
Price Shopping A Policy Isn’t Always In Your Best Interests
Cheaper insurance is not always available somewhere else. Companies will attempt to lure you in with the promise of cheaper rates. Companies want a quick, easy sale and are rarely willing to take the time to find the best plan for your needs. The grass, they say, is not always greener in other pastures. Typically, you will get what you pay for: cut-rate insurance with cut-rate customer service and cut-rate coverages.
Your State’s Minimum Allowed Coverages Are Rarely Enough
Many people assume that the state-required minimum coverage limits are sufficient. However, medical costs stemming from an accident can add up quickly. Properly written policies with ample coverage limits are imperative. State minimum coverage limits can cause individuals great financial hardship if medical costs surpass their limits.
Pay Your Bill On Time
Insurance policies are legally binding contracts and cannot simply be changed without prior notice. Pay close attention to your payment schedule. Payment changes must be requested at least 10 days in advance for most companies. And be aware: if you switch from Pay-In-Full to Monthly, you risk losing that discount.
Appraised Value VS. Assessed Value VS. Replacement Cost
Appraised Value is the price of a home if it were to go up for sale. Assessed Value is what determines your property taxes. Replacement Cost is how much it would actually cost to rebuild your home in current market conditions. Home insurance is based upon the replacement cost which is often the highest of all three amounts.
BONUS: Make an Appointment
Without an appointment, you may stop by your insurance agency’s office only find that there aren’t any agents immediately available. Professionals from nearly all office settings require appointments. Insurance agents are no different. An appointment will allow your agent to collect all necessary information and your meeting will be far more successful. Ever since the COVID-19 pandemic forced many agents to work from home, countless businesses have continued to embrace this hybrid work environment.
Reliable Agency, Inc. is here for all your personal, business or health insurance needs. We have Minnesota offices in Hermantown and Cloquet and in Superior, Wisconsin. Contact us today and we can help you live life joyfully by ensuring you are properly insured at a price you can afford.