Top Tips from Property & Casualty Brokers
1. Be Comprehensive: Don't underestimate the need for comprehensive coverage. Auto, homeowners, and umbrella insurance all serve unique roles in protecting your valuable assets. They offer different levels of protection, so don't skip any one type over the other.
“Individuals and families have different assets, activities, preferences, and needs. A risk analysis should be conducted to identify risks and exposures, a plan should be set in place to help mitigate claims from happening, and then risk should be transferred to an insurance company in the form of a policy that has adequate coverage. “– Ryan Kaiser, Personal Risk Specialist, USI Insurance Services
2. Understand your Coverage: Every insurance policy comes with its unique terms and conditions. Make sure you understand what is covered and what is not before purchasing the policy.
“Insurance policies are not apples to apples as there are different forms of insurance, endorsements, and exclusions. It is important to work with an experienced insurance professional that understands how to evaluate and educate on nuances within policies. “– Ryan Kaiser, Personal Risk Specialist, USI Insurance Services
3. Shop around: You'll find varying insurance rates from different companies, so don't be shy to shop around and compare prices. Remember, the most expensive policy isn't always the best. This is where a reputable property and casualty broker can save you time and energy.
4. Keep an eye on your Credit Score: Believe it or not, your credit score can affect your insurance rates. Strive to maintain a good credit rating, which might get you better rates with the insurance company.
“Insurance companies utilize different pieces of information such as claims history and credit score to formulate what is known as an ‘insurance score.’ The applicant’s insurance score is a rating factor that insurance companies use to determine the amount of premium that they will charge for a given risk. “– Ryan Kaiser, Personal Risk Specialist, USI Insurance Services
5. Bundle up when possible: Many insurance companies offer discounts when you buy multiple insurance policies from them. This can be an effective way to save money while ensuring your assets are fully protected.
“Doing so also makes policy servicing much more manageable. Unfortunately, we often see various policies for one household placed with different carriers, which can result in both coverage and risk management exposures.” – Marissa Muro, USI Insurance Services
6. Opt for Higher Deductibles: A higher deductible means a lower premium. If you can afford to pay a higher out-of-pocket cost in the event of a loss, consider this option.
“Consider paying for all “small” claims out of pocket. Having a claim or claims on your record will cause issues in future opportunities for possible better carrier options.” – Cliff Layfield, Senior Vice President, USI Insurance Services
7. Keep your Insurance Company in the Loop: Notify your insurer when situations change. Things like adding safety features to your home or car can earn you discounts.
“It’s also not a bad idea to keep your insurance advising team in the loop when contemplating life changes such as building a new home, downsizing, traveling internationally, or sending your first child to college. There are a variety of risks and exposures tied to everyday decisions, and with the increasing difficulty of the insurance market, it’s best to discuss the limited options on the front end that might impact your decision-making.” – Marissa Muro, USI Insurance Services
8. Review your Policies Regularly: Life evolves, and so should your insurance. If you’ve renovated your home, purchased new home contents, or got a new car, ensure your coverage reflects these changes.
“Families should be meeting with their client advisor at least once a year to ensure any household changes have been accounted for in their current insurance program.” – Marissa Muro, USI Insurance Services
9. Protect your assets with Umbrella Insurance: This type of insurance kicks in once you've exhausted your basic policy limits. It's essential for anyone with substantial assets.
“Consider limits equal to or greater than your liquid assets at risk. In this time of litigious nuclear judgments, it is better to have a little too much than not enough coverage. The Personal Umbrella policy is the most cost-effective risk transfer device known to man.” – Cliff Layfield, Senior Vice President, USI Insurance Services
10. Invest in a Trusted Broker: A good broker will advise you properly, depending on your unique personal situation. They should be able to navigate the complexities of insurance policies and get you the best deal.
“The client’s first choice should be broker selection, then carrier choice. A good insurance professional will provide the client with the best and/or only option available, given the current market conditions.” – Cliff Layfield, Senior Vice President, USI Insurance Services
WHWM is here to help you identify your priorities, develop a plan, and adjust along the way. Putting your trust in WHWM means working with WHWM’s Founder and President, Stephen Bodwell, a CFP® professional committed to helping you achieve your financial goals and big dreams. Take the next step towards getting what you want in life. Schedule your complimentary, no-obligation 30-minute consultation today.
Walnut Hill Wealth Management, LLC (“WHWM”) is a registered investment advisor offering advisory services in the State of Texas and in other jurisdictions where exempt. The information provided is as of the date indicated and is subject to change.
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