MrInsurability May 12, 2016 No Comments

Not Choosing the Appropriate Deductible

mrinsurability.comSetting a low deductible may sound like a great idea, but typically it means higher premiums and in the case of property and casualty insurance, a greater likelihood of small claims that could ultimately raise your premiums.

If your deductible is low, you may be inclined to turn in claims that you otherwise wouldn’t have, because the deductible would have been more than the actual repair cost. This additional number of claims will ultimately have a negative effect when the underwriters calculate your new year’s premium.

Insurance is designed to protect you against losses that you normally could not afford to cover yourself. So, if you can afford to pay the first $500 or $1,000 in losses yourself, you may not need a lower deductible.

In the case of health care insurance, a lower deductible most certainly means higher premiums, sometimes much higher. Unfortunately, it all too often also means a lack of proper coverage. I’m sure we’ve all heard about the mishaps of people who did not choose wisely.

Consider your own financial situation, how much of the risk are you willing to assume before you make a claim and the insurance company pays on your claim? You really have to think about how much of that loss you could or would be willing to pay yourself.

Your independent insurance agent can give you the facts that you need to make an informed decision!

MrInsurability May 11, 2016 No Comments

Not Paying Attention to the Details
We can’t say this enough; make sure that you understand what your insurance policy covers! In the case of health insurance, it’s cheaper to see doctors who are in-network and buy prescription drugs covered by the formulary.

Be sure to check to see if your doctor is in-network and if your prescription drugs are covered, before you buy a policy. Otherwise, you could get an expensive surprise.

Unfortunately, a lot of people don’t find out what coverage they should have had, until they suffer a loss. An unfortunately common example for a homeowner would be flooding. You would assume that your homeowner’s insurance policy would cover damages from a flood.

Sadly, in most cases it does not. However, you can usually buy a separate flood insurance policy. Many people also assume that drain and sewer backups are covered by insurance, but again, most often they’re not.

Be sure to carefully read your insurance policy and contact your independent insurance agent if anything is unclear. You’ll be glad that you did!

MrInsurability May 7, 2016 No Comments

Not Knowing Current Values and Costs

MrInsurability.comChanging economic conditions means you may need more insurance coverage than you once did. As an example, in the past, a consumer might have based his/her life insurance coverage on their income at that time. But, if something happened and they were no longer around, their beneficiaries would soon discover, to their dismay, that the current coverage was not adequate.

They would soon discover that more capital needed to be at work, to provide the same income as the salary that it was supposed to replace. In other words, if you make $50,000 per year and you only have $50,000 in coverage, then your beneficiaries have nothing left in only one year!

Disability and long-term care insurance are even more complicated than traditional life insurance. For example, do you want coverage that lasts forever? Are there potential health issues in your family? That’s why you need to speak to a independent insurance professional, as they can give you guidance as to what course to take.

In the case of homeowners insurance, your home could be under-insured if you’ve renovated or if the cost to build a home has increased due to higher material costs or other factors that you may not even be aware of.

That’s why experts recommend reviewing insurance coverage once a year to make sure it still fits your needs. Talk to your independent insurance agent to get the necessary information to make wise decisions!

MrInsurability May 6, 2016 No Comments

Not Knowing What Insurance You Can Afford

MrInsurability.comAs of 2012 the U.S. Census Bureau reported that 48 million Americans had no health insurance. About 30% of U.S. households have no life insurance, according to LIMRA, a worldwide research and consulting organization for insurance and financial services.

It has been found that in many cases, consumers don’t buy insurance because they think it’s out of their budget. Often, that’s not the case, according to Marvin Feldman, president and CEO of the LIFE Foundation, a nonprofit organization that educates consumers about financial planning and insurance.

The LIFE Foundation collaborated with LIMRA on the 2013 Insurance Barometer Study, which found that the average consumer thinks life insurance is three times more expensive than it actually is. “Consumers are not researching it to determine what the cost is,” Feldman says.

When buying either health insurance or property and casualty insurance, the consumer should ask about potential discounts. “Two-thirds of consumers don’t realize they can get financial help if they buy their own health insurance and they can get financial help if they go and buy in these health insurance marketplaces,” says Lynn Quincy, senior policy analyst with Consumers Union, a division of Consumer Reports. “You may be way overpaying if you don’t investigate this possibility.”

While health insurance discounts are often income-based, homeowners and auto insurers offer discounts for everything from being a member of groups like AARP, to being a good student or a good driver, to having a home security system.

Don’t let yourself get caught short just because you weren’t sure of the facts. Contact an independent insurance agent and get the help you need in figuring it all out!

MrInsurability May 5, 2016 No Comments

Not Having an Independent Agent

MrInsurability.comInsurance is complex, to say the least. Few consumers understand the difference between competing products and few can determine what they need to be adequately protected.

Those who buy insurance online may well not be getting the coverage that they need. Those who buy insurance from a captive agency (sells insurance from only one carrier) are not getting competitive pricing and they may not be buying the best insurance for all of their needs.

As already mentioned, an independent insurance agent should identify your insurance needs, develop a plan for you, obtain competitive pricing and keep you informed of any regulatory changes as they take place. Your independent agent should also keep you from making any of the mistakes that we’ve been talking about!

MrInsurability May 2, 2016 No Comments

Not Insuring Your Home for its Replacement Cost

MrInsurability.comIn today’s housing market, many homeowners have chosen to reduce their insurance coverage based on falling market prices in their area. What many people don’t understand is that a home’s market value is not the same as its replacement cost!

Not insuring your home for its full replacement value, especially if it’s more than the current market value, can be risky. Homeowners need to have a complete understanding of replacement costs, so that they can make an informed decision.

Like many commodities or products, market value is determined by supply and demand. It is the price at which a home can be bought or sold at a specific time, based upon its location, condition and other factors.

Replacement cost is based on an estimate of what it would cost to rebuild a similar structure on the same site, with the same kind and quality of materials. Rather than being based on the price the home would bring in today’s market, it is based on the cost of building materials, labor and the use of equipment. These differences can amount to many thousands of dollars!


MrInsurability April 30, 2016 No Comments

Not Being Smart When Filing a Claim on Your Homeowner’s Policy

Some homeowners file claims for small damages to their homes and then wonder why their insurance premiums go up. It is often better to pay for minor repairs out of your pocket, instead of filing a claim. Insurance underwriters take your claims history into account when you renew your insurance and the price tends to go up when this happens..

Conversely, don’t overlook a claim when it’s warranted. Contact your independent insurance agent and discuss the damage. Your independent agent should provide the professional advice that you need, so that you can decide whether a claim is the best idea in your situation.

MrInsurability April 29, 2016 No Comments

Not Insuring Valuable Property

MrInsurability.comThis subject is pretty self-explanatory. When you purchase anything of value, you risk losing its value if you fail to insure it. Whether you own expensive art, jewelry, a boat, Jet Ski, antiques, rare stamps or a collection of any type of valuables, you should insure it. Otherwise, it can be stolen or damaged and you will have no recourse to collect your losses.

MrInsurability April 29, 2016 No Comments

Neglecting to Tell Your Agent about Life Changes

MrInsurability.comSimilar to the section on Not Updating Your Coverage, consumers jeopardize their coverage when they fail to report important changes, such as moving and renting out their home or letting a younger driver operate their motor vehicle.

Insurance is underwritten based on your circumstances at the time that you purchase the policy. If those circumstances change and you fail to notify your agent, you may not be covered if and when you file a claim. Sometimes even a seemingly small change makes a big difference.

Your insurance needs will always change over the course of your life. When you marry, when you have children, when they move away from home and when you retire, are just a few of the everyday events that will affect your insurance needs. Be sure to keep your agent informed of these changes.