Personal Insurance: What you need to know!
By: Mary Thompson, Capstone Brokerage President, November 14, 2017
Almost every American is required to carry some form of personal insurance, such as insurance to drive a car, to rent property, to have a home loan, or for their health care. When you are shopping for your insurance needs did you know that by bundling coverage you can save money each month? Just like a cable bill the more insurance policy you carry the greater the “bundle” discount. Bundling automobile and homeowners is the most common when it comes to personal insurance.
To be able to drive on the roads car insurance is a requirement. However, you don’t have the exact same car or driving habits as your neighbor, your best friend, or even your parents. Your automobile coverage needs to be just as unique as you are, so that they reflect your personal insurance needs but also the cost. Have you recently received a speeding ticket? Did you know it can cost you at renewal? In fact, I was recently helping a coworker with his insurance renewals and because he had a ticket within the last 6 months his rate at renewal for the same coverage nearly doubled. To help reduce his costs, we opted to bundle his insurance needs to try and save a little bit of money for him. By doing this we were able to reduce his premium monthly by 100 dollars.
To have a loan on a home you are required to carry homeowner’s insurance. Homeowners insurance covers the replacement cost of your home and many factors can play into the rates. Your home is not just an asset it is also where you come home to after a long day, it is where memories are made. Choosing an insurance policy to protect your home can be complicated. We recommend having a knowledgeable professional assist you in selecting coverage. A few things to consider when selecting coverage is the type of coverage you will need, such as market value and replacement cost.
Market Value is the value of your home based on the price it would be in the open market for resale. While this may seem like the only value that determines the coverage option you choose it isn’t. Replacement cost is also an important thing to consider, what would it cost to rebuild your home? What would be required in means of material to construct the home, furnish the home and what market fluctuations should be considered?
Do you have a family pet? Are you insured if something happens due to your beloved family pet? Insurance companies evaluate risk in terms of groups that share risk characteristics for which there is sufficient history and data. Did you know your dogs breed could cost you more in premium based on the evaluated risk of that breed? Understandably not all dog breeds present the same risk simply because of their breed, however, for insurance purposes certain breeds, such as Pit Bull’s and Rottweiler’s, will require the homeowner to have higher coverage.
It is beneficial to bundle your automobile and homeowner’s coverage. Remember that your home and your automobile are your most valued assets. On average a consumer can save anywhere from 4%-10% when they choose to bundle coverage’s. For more information, be sure to talk discuss this option at the time of your policies renewal to see if bundling will help you save some money as well.
