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How to buy insurance coverage
Insurance - The Last Stop on the Train
Insurance is usually the last thing thought of when a ‘deal’ comes together, but is generally one of the most important purchases a business owner, homeowner or car owner can make. It could mean the difference between being made whole (indemnification) or being insolvent in the event of a claim. As the saying goes – “it’s never a problem, until there’s a loss” is very true. The most thoughtful buyers of insurance are those who have had the displeasure of having to use their insurance policy or others who needed it, but did not have the proper coverage in place to use.
Review Your Policy
As painful as it might be, it is important to review your policy annually to see if the limits are adequate. It is tempting to let these things go, but in a crisis you will be happy you knew if you were properly ‘covered’. It is also important to read the coverage forms. You might think you have coverage when in reality you don’t or you may think your deductible is a fixed number, but in reality it is a percentage of the claim. However, the time to find out is not after a claim.
Insuring a Home Office
Don't Skimp on Insurance
In recent years the economy has made many businesses feel the pinch of the expense crunch. One of the first areas looked at to downsize is usually insurance. This is unfortunate because without the proper coverage with a strong company that will stand behind its promise to pay, you may be left with empty promises when you need your insurance the most.
Pick the 'Right' Company
There is a difference between the ‘ability to pay’ vs the ‘willingness to pay’. Some companies have the reputation of being difficult working with claimants. This can leave a lasting impression, not wanting to continue doing business with that company even if they pay your claim. Making an enemy out of a client (you, as the insured) is something insurance companies should never want to do. However, there are times when an insured or agent/broker did not secure the proper coverage or thought they did, but didn’t which can lead to issues later on.
Insuring Your Home
Insurance Coverage is a Fundamental Necessity
Securing proper insurance coverage is a fundamental necessity for any business, homeowner, or car owner especially if they do not want to take on the financial risk themselves. As a business, securing an income stream is vital to running a business. Having the proper coverage to protect your income stream in the event of a loss will help ease the stress of continued bill payments. The same goes for home and car owners.
Make Sure You Have Adequate Coverage
Be a Prudent Insured
The first rule to being a prudent insured is to understand what you are covering. Always purchase insurance with an ‘eyes towards claims’. If you do this you will cover what you intend to cover and understand what deductibles you have and why. The worst thing that could happen at the time of loss is not have the proper coverage in place.
Use a Broker if you Do Not Understand Insurance
If you are not well versed in policy language or have the proper tools to assess what assets or liabilities you need to cover the best thing to do is consult or work with a broker. They can help you find and purchase the coverage you need. However, as the consumer (insured) it is still wise to read you policy and understand it. Don’t purchase it and put it in a draw until you need it. When a storm is coming is not the time to wonder if you are protected. It is worth the time to spend reading and understanding the coverages you have. It may end up saving you and/or your business a lot of heartache and money later on.