INSURANCE >> THINGS TO KNOW

Are You Sure You Are Covered?

Read the your policy carefully and review with your attorney. Exclusions and exemptions in policies may come back to bite you should you ever need to file a claim.

Homeowners Insurance

Some of the perils you think are covered under your homeowner's policy may not be. There are several circumstances that aren't covered under a standard homeowner's insurance policy.

For flood insurance, a separate policy must be purchased. For earthquake and water backup coverage, a rider must be added to the policy.

In recent years, insurance companies have been hit hard by mold damage claims and now many of them are placing restrictions on mold coverage.

Items such as coins, jewelry, silverware, and fine arts might not be covered unless a rider is added to the policy.

If your home and its contents are insured for Actual Cash Value, depreciation will be factored in when settling your claim. If you want everything to be fully restored after a loss, you need to ask for Replacement Cost on both your contents and dwelling.

Keeping Premiums Low

To keep premiums low be selective in making claims. The purpose of homeowner's insurance is to cover major catastrophic losses. If you file small claims, it can cause your premiums to increase and your policy may even be non-renewed. It is best to file claims only when there is no way you can take care of the problem yourself.

You can also reduce your premiums by selecting a higher deductible. If spending $1,000 would not ruin you financially, then you should go with a $1,000 deductible.

Shop around before renewing your policy. One month before your policy renews, you should shop around to see if you can find better rate, especially if the company you're with has a rate increase.

It is always a good idea to meet with your insurance agent and review all of your policies.

Don't Rush to Make a Decision

Do not take a decision till you are clear about your requirements and till you have considered some options. While you should not delay a decision that could ensure protection for your dependents, rushing into a decision is not wise either. Make sure you fully understand the features of the policy you are buying and the terms and conditions specified in the contract

Common things to avoid:

• Not buying a policy when you are in good health, and looking to buy a policy only after some health problems creep up.
• Not evaluating your protection requirements and financial goals before deciding to buy a policy.
• Dealing with an untrained / unlicensed financial consultant / insurance advisor for your requirements.
• Buying a product that does not meet your requirements or provides cover for an event that you do not need or buying a cover in excess of / short of your protection needs or for a coverage period that is too short.
• Filling in false / misleading information about your health condition in the proposal form in the hope of getting a lower premium.
• Buying life insurance as a pure investment or savings tool without regard to the protection requirement.

At My Twin Cities Home we will search a variety of companies to try to get you the best policies for your needs. We work with lots of different providers so you have a great selection of what is available in the marketplace.