Every homeowner in California needs competitively priced Personal Insurance. Personal Insurance can be tricky—especially if you take your advice from certain entertaining television advertisements. Many of these ads make insurance buying sound as simple as getting a cup of coffee. The problem with this kind of thinking is that if you don't know what kind of Personal Insurance you need, how can you know what type of insurance to buy? The last thing you want is to find out your "no-hassle" insurance policy doesn't cover a claim that you need to file.
The good news is we are here to help you find the right combination of coverage, price, and service. We can help you identify what kind of insurance you need, and then get you the best coverage at an affordable price.
We've also put together a list of the common errors many people make when buying insurance, so you don't fall victim to the same mistakes.
Common Insurance Mistakes
1. Not knowing the replacement value of your home
Many people don’t understand the difference between “market value” and “replacement value.” Market value refers to the value of your home for resale purposes. Replacement value refers to the cost to rebuild your home from the foundation up. Ask your agent to help you define what it might cost to rebuild your home using current new construction costs.
2. Assuming you have Flood and Earthquake Insurance
All Personal Insurance policies exclude flood damage and earthquake damage to your home and personal property. We can provide you with a competitively priced option for both kinds of coverage based on your individual needs. It's also important to note that there's a 30 to 45 day waiting period before any Flood Insurance can go into effect.
3. Assuming that sewage backup is automatically covered under your Homeowner’s Insurance policy
Sewer backup coverage can be added at a very low cost and is highly recommended. Sewer backup usually is defined as being caused by issues with the sewer line outside of the home.
4. Setting your deductible too low
Many people set their Auto Insurance or Home Insurance deductibles too low. A small increase in deductibles can often offer significant savings from year to year. If you have a good claim or loss history, it will likely benefit you to increase your Personal Insurance deductibles.
5. Failing to use an independent agent
Independent agents, like our firm, can utilize dozens of insurers to find the best possible combination of coverage, price, and service for you. We are also there to help you manage and process all your Personal Insurance claims. We work for you—not for the insurance company.
6. Paying premiums in monthly installments
If you are able to pay your insurance in full, it can save you as much as 5% off your premium, depending on the coverage and insurance company. There are also billing fees that are often added to monthly premium installments.
7. Buying insurance based on price alone
Low-priced insurance is good, but it may mean the company is offering limited coverage in order to get a low price. Low-priced insurance is good at first, but if you have a claim and have to pay a hefty amount out of your pocket, it really isn't low-cost insurance. We also recommend looking to A.M. Best, J.D. Power and the Better Business Bureau for ratings on an insurance company’s financial strength, handling of claims, and customer service/business practices, respectively. The agents at Leap/Carpenter/Kemps can also help you better understand which company may be better for your individual needs.
8. Only purchasing the legally required amount of auto liability coverage
The minimum amount of insurance is just that—the bare minimum. If you have a claim over the policy limit, you will be required to come up with the money to settle all claims against you, including expensive attorney’s fees. If you own property or have any investments like a 401K, we highly recommend buying auto liability limits above the minimum requirement. If you want to save money and have an older car worth less than $1,000, consider dropping collision and/or comprehensive coverage.
9. Not bundling your Home and Auto Insurance
One excellent way to reduce your Personal Insurance premiums is to bundle your insurance policies with one insurer. You also might consider combining your boat, RV or motorcycle with one insurer as well. Bundling can save you a lot of time when it comes to making claims. If a fire in your garage damages your car and motorcycle, just one phone call can start both the Homeowners and Auto Insurance claims.
10. Thinking stay at home parents don’t need Life Insurance
Life Insurance can be just as crucial for the stay at home parent as it is for the breadwinner. Think of the cost of all the activities a stay at home parent undertakes and put a dollar amount to these.
Do you want a no obligation Personal Insurance review to see if you have the appropriate coverage that you need? If so, then contact one of our independent insurance agents at (888) 461-9635 today!
LCK Insurance Agency is one of California's most prominent independent insurance agencies. They offer commercial business insurance, employee benefits, life & health insurance, and personal insurance.
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Leap | Carpenter | Kemps Insurance Agency provides Commercial Business Insurance, Employee Benefits, Life and Health Insurance, and Personal Insurance to all of California, including Merced, Atwater, Los Banos, Mariposa, Madera, Fresno, Modesto, Turlock, and Stockton.
CA License Number 0646081 | Licensed to do business in California, Arizona, Hawaii, Idaho, Montana, Nevada, North Carolina, Oklahoma, Oregon, Virginia, West Virginia and Washington.