Don’t Get Taken to The Cleaners!Fiscal Fitness Clubs of America
Avoid these 20 Mistakes with Property and Casualty Insurance
Here are 20 ways you can mess up your P & C coverage that can cause the insurance company not to pay claims. Now, not all of these are 100% accurate for every policy in every state, BUT they are worth examining and discussing with your company or agent.
Mistakes we make as homeowners:
1. Not telling the insurance company (or county assessor) about any improvements made like finishing the basement or remodeling a kitchen. Who wants that value recovered in case of a tornado, fire, etc. anyway? I mean, it only cost us $20 to $30 thousand!!!!
2. Renting a room out in our home and not requiring renters to get their own renter’s insurance. They won’t expect anything from us if we set the house on fire accidentally. Right? No…wrong!
3. Pretending like liability coverage isn’t important. No one working on or in our house could ever get seriously hurt. Hmmm….
4. Forget to let the insurance company know we have pets (horses, dogs, pigs, pet boa constrictors, rodents, etc.). We’re sure they will all be perfectly well behaved, even when someone is taunting them or they are scared.
5. Fail to list a domestic partner or “fiancé” living with us for 10 years on our coverage who has full run of the house and all their stuff in it. We can pretend it was ours except for at claim time when the company sees the receipts for property claimed was purchased by them.
6. Let the smoke alarms get out of date so in case of a fire they fail. Since our homeowners plan requires ACTIVE alarms, we’re out of compliance with requirements and the company is off the hook.
7. Assume that no child will ever be inappropriate or get hurt while using our tree house, trampoline, swimming pool, (called attractive nuisances because children are called to them and claims become a nuisance!) etc. If the Insurance company doesn’t know about them they won’t have to cover claims.
8. Ignore the flood zone and earth movement clauses even when we’re in one of those zones. (I’m sure it won’t happen to us and we know better than the U. S. Geological Survey teams.)
9. Not cover the boat, jet ski, snowmobile, etc. because we’re sure our teenager won’t let anyone else use them or will never run into anyone else.
10. Pay for replacement coverage, but keep your residence under the 85% required insurance amount, and then try to get a builder to commit to rebuilding it at half the current costs.
Here are some major auto mistakes we make to avoid paying high premiums that can result in big losses:
1. Pretend that teenagers never drive our best car even when they have no other option.
2. Fail to list people who live in our house that might drive our cars.
3. Think that just because we have comprehensive coverage that our leased auto will be fully covered and not check into what the gap would be.
4. Underestimate and under-insure our liability to save a little on premiums so we are unintentionally accepting the risk that a serious problem can wipe us out.
5. Fail to match our liability with our umbrella policy, even if it means we created a $200,000 deductible.
6. Think that everybody (except our alcoholic, bum uncle) has insurance, so we fail to adequately cover for uninsured or underinsured drivers.
7. Assume that medical payments will be covered by insurance. I mean I’m sure that every person who gets in my car has health coverage with a low deductible. Besides, I’m sure they or the provider who isn’t getting paid wouldn’t sue me for medical bills, right?
8. Take the lowest deductible possible, so we don’t have to pay money out of pocket and make a claim on every little dent. I’m sure my rates won’t rise.
9. Not waste time getting comparative quotes. They would only save us money!
10. Pretend that we or our family will never be in a serious accident that could injure or kill someone else and thus avoid getting the right liability amount.
Actually, we could have made this the top 40 mistakes, but that would be too long of a blog. The point is that a little bit of time and knowledge can go a long way on avoiding mistakes that could wipe us out. Nobody (including those in the industry, except injury attorneys) really likes this stuff, but it’s an important part of our world. You can quickly learn what to do and not to do through our class and resources about P & C insurance. That will take you an hour. Figuring out the critical components to insure and getting the right quotes can take another hour or so. Paying for the right insurance could cost you a few hundred dollars more a year in the worst case or you could save that much through your cost comparison project. Not addressing the issue and facing the consequences will cost a lot more in time and money. Let’s avoid these mistakes. Let’s get the right coverage at the right price every year!
Come take our class and follow the process to get your right coverage at the right price! Send us an email to get a free link to the recording.
What’s next? If you’re a club member, go to your online classroom and access our P&C insurance resources. If you’re not a club member, but are interested in learning more about our services, follow this link to schedule your complimentary call today and find out if we are a good fit!