Insurance is a valuable product to have and, in some cases, you might not be able to get enough for the actual potential expenses and risks you face. For instance, personal property and bodily injury liability limits in auto insurance policies might not be high enough to make you feel comfortable that your risk is adequately covered, and that may prompt you to look at an umbrella policy. But there are instances in which you can be over-insured if you aren’t careful to watch your policies.
Home insurance limits: Your home insurance policy pays for contents that are damaged or stolen as long as the events surrounding that are insurable incidents. But if the limits of your policy exceed the actual or replacement value of your property, then you are paying of insurance that you don’t need. Find out whether your home insurance policy pays for actual or replacement value, and then re-evaluate the number to ensure that it works with the corresponding value of your property.
As for the structure of your home, the insurance benefits you pay for are to defray the cost of rebuilding your home. They do not reimburse your for the value of your property, which is comprised of the structure along with land that you still own and that still has value after an insurable incident. If the limit on the dwelling coverage of your home insurance policy exceeds rebuilding costs, you need to re-evaluate your policy.
Auto insurance: Many portions of auto insurance policies are immune to over insurance, but there is one place that you might be putting too much value. Your comprehensive limits should never exceed the actual (or replacement, depending on your policy) value of your vehicle. If they do, then you aren’t going to get a check for the extra amount if your car is totaled, so you should adjust that.
Business insurance: Your business owns property and that property has a value. If your business insurance policy limits are set higher than the actual or replacement values of your business property then you are likely over-insured.
The purpose of insurance is to make you whole after an insurable incident, not to make you profit. Any time the limits of your insurance policies exceed the dollar values actually at risk of loss, you should talk to your insurance agent about possible readjustments.
Contact us at ECI Agency today to find out your best options for Oklahoma City Insurance policies!
If you are a self-employed individual, disability insurance is a vital protection to provide yourself with. As a self-employed person, you are responsible for creating and paying for your own benefits. If you want to give yourself maternity or sick leave, but still need to pay yourself a paycheck during the leave, then you need to have sufficient funds saved in order to do so. And because your business may suffer from your limited or non-accessibility, you also need to have enough funds saved to continue to pay payroll while you are back in the office drumming up business again. With disability insurance, you can receive payment through your policy and leave your business savings untouched.
If you are considering the purchase of a
One of the most challenging aspects of buying a
When you think about the personal property coverage in your home insurance policy, you probably conjure images of your furniture, clothing and electronics. But did you know that many policies also consider your digital data to be personal property?
1. Crash Avoidance Technologies
Insurance is a valuable asset within any financial plan, but that doesn't mean that the premiums can't hurt your budget if you aren't careful. Fortunately, there are several ways to save money on insurance premiums. Here are five suggestions to help you get the coverage you need at a price you can afford: