The High Cost of Cheap Insurance

The High Cost of Cheap Insurance
The High Cost of Cheap Insurance

The High Cost of Cheap Insurance

The High Cost of Cheap Insurance, Most people who apply for home insurance ask the same question. Can you give me a better price? For them, this is the deciding factor as to who they should place their coverage with. The reality is that insurers are in this to make money, so they all tend to remain competitive in order to stay in the game. Regionally, you should only find about a 10% or so difference in premiums across the board.

So why do we buy insurance? There are two main reasons. The first is to cover our property in case of loss. Second, it is to protect ourselves from our unintentional, negligent actions. Consider what all insurance companies ask you when applying for home insurance. These questions are usually asked even before any details about the size and style of your home.

-How close is your home to a fire hydrant and/or fire pit?
-What type of wires do you have -Switches or fuses?
– What about the heating?
– What type of plumbing?
-What is the age and material of the roof?
-Have you had any claims within the last five years?

All of these things “qualify” you for insurance and play a role in determining your eligibility for insurance. They also affect how you are rated for prizes.

The High Cost of Cheap Insurance, So why do insurance companies ask these questions? The likelihood and severity of a loss due to one of these specific situations are high, especially if your home is older and your services have not been updated. The cost of repair or replacement can be huge after these types of losses, and insurers want to make sure this risk is minimal before offering coverage.

The frequency with which you have made claims is another important consideration. Most companies will not offer you a policy if you have had more than 2 injuries in three years as they feel you are careless and consider yourself a bad risk. Therefore, it is important to avoid making minor, annoying claims, as you just never know when a big one may come your way. If you have already made one or two small ones, making another will jeopardize your eligibility. The High Cost of Cheap Insurance.

The High Cost of Cheap Insurance, Insurance does not cover everything. I recommend that you purchase the best policy available to protect one of your most valuable assets … your home. The basic policy covers various things, including:

– The main building (your home)
Detached private structures (such as a fence, garden shed, greenhouse or gazebo)
– Personal property (which is usual for the average home)
– Additional cost of living (which protects you after a loss that makes your home uninhabitable)
Liability cover (which includes voluntary medical payments, voluntary property damage cover, and worldwide personal liability insurance)

The High Cost of Cheap Insurance, All companies will cover these basic things, but they will all have their own built-in “features” or “special constraints” that set them apart from their competitor. With this in mind, some of the questions you should ask are:

– What is not covered?
– What do I have to pay in case of loss?
– How will it affect my insurance?
– Who do I call in case of loss? What if it’s in the middle of the night? Is there a number to call?

Cheap Insurance For Young Drivers

The High Cost of Cheap Insurance, Each area or region has different concerns. In my region, one of the biggest concerns is water damage. Yet policies are different and offer different coverage options. It is important to understand what your policy will and will not cover.

Blasting of frozen pipes is becoming a very real concern, especially with the changing weather patterns we have seen. Areas that have never seen freezer tubes suddenly experience this happening with increasing frequency. Will your policy cover these pipes if they burst into an unheated part of your building? Most will not, but some will.

The High Cost of Cheap Insurance, Damage from water can amount to tens of thousands in repair bills. So let’s say you had a policy that did not cover this, and if you had only spent $ 30 more, you would have this coverage. That saving of $ 30 suddenly does not seem like such a good deal anyway.

What kind of deductible does your policy have? Some people like a low deductible, the lower the better. The fact is that you pay extra for this deductible, and if you have not made a claim for years, you have probably already paid the difference between a low deductible and a higher one. The High Cost of Cheap Insurance.

Will my premiums increase if I make claims? The answer to this is usually “yes”, although more and more companies are offering “claim forgiveness” if you have been free of claims for a number of years. The High Cost of Cheap Insurance.

Previous articleCheap Insurance For Young Drivers
Next articleGuide to a Cheap Insurance Policy


Please enter your comment!
Please enter your name here