Insurance is a rip off! Year after year of paying premiums only to never have anything happen, and then it does. Unfortunately, we get lulled to sleep living in Safford Arizona where we don’t have a lot of catastrophic events. So we don’t get reminded very often why insurance is important. So, we search and search for the cheapest price possible, with little consideration of the coverage. Then something happens, and we have found that we have traded a nickel for a dollar worth of problems.
That is exactly what happened to a friend of mine. The rate was HALF the cost of the other guy. They thought they were good and covered. Then a pipe burst, and they found out per their adjustor, “You were sold a bare bones policy.” Companies are different, Coverage is different, and your “policy form” can be different. So what are a few things you should look for on your Homeowners policy?
- Valuation – Is your home insured for what it would cost to rebuild or just what the bank wants? Tough thing. What it would cost to rebuild and what it can be purchased for can be very different things. Make sure your agent uses a replacement cost estimator to determine the value of your home.
- Replacement Cost – Look for it. Your banker is. Even better is something called extended replacement cost.
- Coverage Form- You are SPECIAL so purchase a SPECIAL form. If you look at your policy and you see BASIC or BROAD. You are getting less that what you could be getting. So purchase special.
Not that everything else is fluff, BUT these three things are a great place to start.
Did you find something wrong with your insurance policy? Get a quote from an agent that wants to make sure you get the best coverage possible at the best price. Start your quote online today!