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What Should I Insure

What Should I Insure?

Occasionally, you may ask yourself “What should I insure?” You insure your car and your home—you have to. Your job may provide you with a life insurance policy or you seek out one that adequately covers your net assets. However, beyond these common policies, what else needs the protection that insurance provides? Here are other needs that are often overlooked, but shouldn’t be.

1. Flood Protection

As the most common damage from a disaster, flood insurance is not just for residents in a high-risk zone. Even high rains can bring unexpected water levels that rise faster than coverage can take hold. While a traditional homeowners policy covers water damage occurring from inside the home, outside flooding is not included.

For years, flooding has been a tricky insurance for many adjustors to estimate, thus, government issued insurance was the only offering. Now, with prediction models adapting to modern technology, private markets are beginning to open, bringing more coverage options than before.

Flooding is a perpetual risk in every season and is prevalent across the country. From snowmelt to hurricanes, flooding is a potential threat that is too often ignored. Plus, a flood policy typically takes 30 days to go into effect, so waiting until catastrophe strikes is not going to protect your property.

2. High Value Items

While homeowners policies cover valuables in a home, it is only up to a certain monetary ceiling. Items like expensive jewelry and fine art traditionally exceed the value of an insurance policy and must be insured separately. The key is to create a home inventory and catalog the amount of high value items in your house. Then check with your agent. If you have pieces that will certainly be irreplaceable with the typical coverage in the event of a loss, then you will need to add a rider or even a policy that protects valuable assets.

3. Extra Liability

An average of 40 million lawsuits are filed every year. Though it seems unlikely, in the event of a lawsuit, typical liability coverage may not adequately protect against all damages. One way to safeguard this is with an umbrella policy. This policy is flexible and can be applied to both auto and home insurance losses.

Imagine a teen driver hits three parked cars in an upscale shopping district. After covering the damage from all parties involved, a lawsuit pops up from one of the owners, leaving the driver (or the driver’s parents) with S500,000 in legal fees and restitution. The grand total is now $1,200,000 in damages. Their auto policy covers up to 1 million in liability, yet they still owe $200,000. An umbrella policy with a S1,000,000 (the minimum umbrella limit is $1 mil) limit could be applied, leaving them clear of any heart-wrenching, out of pocket payments.

Many of these policies are cost-effective and easily added to existing coverage. Talk with an agent about your needs so you can find the best policy fit. Contact our office. We’re happy to start a conversation about your coverage and answer any questions.

Read more about Umbrella Insurance or Flood Insurance on our blog. 

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