How much do you know about your insurance policies? Did you perform any form of research prior to purchasing your policy? If you’re like 38% of the respondents of a recent national survey, then you didn’t. 40% of those same respondents said they weren’t even sure if they had adequate coverage for their needs.

More than 33% of respondents haven’t even spoken with their insurance agent in the last year. This means that some of those individuals may be paying more out of their pocket for insurance than they need to or don’t have the proper coverage that they need. Life changes, such as a new baby or a marriage, can drastically impact your insurance policy premium and coverage.

Here are the most costly insurance mistakes that are made:

  1. Not Knowing or Understanding Your Coverage Limits – This is the most important aspect of insurance coverage. Not even one-third of respondents in the national survey considered coverage limits when purchasing insurance. It takes only a few extra bucks a month to get separate umbrella policies that will pay off in the end.
  2. Ignoring Discounts – Why ignore something that can save you money – no matter how small? If you aren’t sure you qualify for a specific discount, ask. If nothing else, you and your agent can go over all the discounts available to see if you qualify for any of them.
  3. Not Considering Estate Planning – If your home is in a trust, it’s important that your agent knows this. Otherwise, when you pass, your home will be left uninsured. Further, it’s important to evaluate all of your assets, as some are not covered under the standard homeowners policy and actually require special coverage.
  4. Keeping the Biggest Asset from Assessment – Consider other insurance options besides your homeowners policy, such as flood insurance, earthquake insurance and even sewer and drain back up insurance. In addition, make sure you understand the policy terms regarding change of occupancy and vacancy to ensure that a claim is not denied on your home in the event of a disaster.
  5. Opting for the Cheapest Coverage – Price should never be the most important criteria when purchasing insurance. While it should be considered, it should not be the deciding factor on your policy.

For help ensuring you have adequate insurance coverage and to understand the terms of your policy, contact Randy Jones Insurance in Pleasanton, CA. We know that insurance is important and we’ll take the time to sit down with you and explain your policy to you in terms that you can understand.