UAE24x7
  • UAE
  • News
  • Entertainment
  • Sports
  • Business
  • Lifestyle
  • Food & Drink
  • Expo 2021
No Result
View All Result
  • UAE
  • News
  • Entertainment
  • Sports
  • Business
  • Lifestyle
  • Food & Drink
  • Expo 2021
No Result
View All Result
UAE24x7
No Result
View All Result
Home Business

Five Insurance mistakes to avoid

Thamilvanan by Thamilvanan
September 14, 2021
in Business, News
0
Five Insurance mistakes to avoid
Share on FacebookShare on Twitter

Saving money feels great. And shopping around when you’re looking for insurance coverage is a great way to do it. However, simply reducing your coverage or dropping important coverages altogether is like diet without exercise—focused only on numbers, not on results. Don’t risk ending up dangerously underinsured and on the hook for much bigger bills in the event of a disaster.

Following are the five most common auto, home, flood and renters insurance mistakes people make, along with suggestions to avert those pitfalls while still saving money.

 1. Insuring a home for its real estate value rather than for the cost of rebuilding.

When real estate prices go down, some homeowners may think they can reduce the amount of insurance on their homes. But insurance is designed to cover the cost of rebuilding, not the sales price of the home. You should make sure that you have enough coverage to completely rebuild your home and replace your belongings—no matter what the real estate market is going.

 2. Selecting an insurance company by price alone.

It is important to choose a company with competitive prices. But be sure the insurer you choose is financially sound and provides good customer service.

A better way to save: Check the financial health of a company with independent rating agencies (some well-known ones: A.M. Best, Moody’s), and ask friends and family members about their experiences with insurers. Select an insurance company that will respond to your needs and handle claims fairly and efficiently.

 3. Dropping flood insurance.

Damage from flooding is not covered under standard homeowners and renters insurance policies. Coverage is available from the National Flood Insurance Program (NFIP), as well as from some private insurance companies. You may not be aware you’re at risk for flooding, but keep in mind that 25 percent of all flood losses occur in low-risk areas. Furthermore, yearly weather patterns—spring runoff from melting winter snows, for example—can cause flooding.

A better way to save: Before purchasing a home, check with the NFIP to determine whether a property is situated in a flood zone; if so, you may want to consider a less risky area. If you are already living in a designated flood zone, look at mitigation efforts that can reduce your risk of flood damage and consider purchasing flood insurance.

 4. Only purchasing the legally required amount of liability for your car.

The minimum is just that—the least you can get away with by law. So buying only the minimum amount of liability means you are likely to pay more out-of-pocket later. And if you are sued, those costs can jeopardize your financial well-being.

A better way to save: Consider dropping collision and/or comprehensive coverage on older cars worth less than $1,000. The insurance industry and consumer groups generally recommend a minimum of $100,000 of bodily injury protection per person and $300,000 per accident. 

 5. Neglecting to buy renters insurance.

A renters insurance policy covers your possessions and additional living expenses if you have to move out due to an insured disaster, such as a fire or hurricane. Equally important, it provides liability protection in the event someone is injured in your home and decides to sue.

A better way to save: Look into multi-policy discounts. Buying several policies with the same insurer, such as renters, auto, and life will generally provide savings.

  • Trending
  • Comments
  • Latest
How to check UAE visa status & validity using only passport

How to check UAE visa status & validity using only passport

September 10, 2021
The most important advice that every tourist should take into account when visiting Dubai

The most important advice that every tourist should take into account when visiting Dubai

July 25, 2020
Procedures for Renewing the Driving License in Abu Dhabi [3 Simple Steps]

Procedures for Renewing the Driving License in Abu Dhabi [3 Simple Steps]

September 21, 2021
The Top & Most Popular Seafood Bucket Restaurants in Dubai for you [Never Miss]

The Top & Most Popular Seafood Bucket Restaurants in Dubai for you [Never Miss]

September 23, 2021
Is classroom education a distant dream now?

Is classroom education a distant dream now?

0
Is classroom education a distant dream now?

Asia’s Biggest Book Market Damaged Beyond Belief!

0

Is earth’s magnetic field weakening creating another nightmare on planet earth?

0

UK’s new twin Nuclear Power Plant is catastrophic: Environmentalists

0
5 Best UAE day trips to escape the city

5 Best UAE day trips to escape the city

September 28, 2022
UAE travellers alert: Passengers must declare cash and items worth more than Dh58,000 when visiting Saudi Arabia

UAE travellers alert: Passengers must declare cash and items worth more than Dh58,000 when visiting Saudi Arabia

September 27, 2022
Saudi Arabia plans to send a female astronaut to space in 2023

Saudi Arabia plans to send a female astronaut to space in 2023

September 23, 2022
Get your medical fitness results for visas in under 30 minutes

Get your medical fitness results for visas in under 30 minutes

September 23, 2022
UAE24x7

Menus

  • UAE
  • News
  • Entertainment
  • Sports
  • Business
  • Lifestyle
  • Food & Drink
  • Expo 2021

Recent News

5 Best UAE day trips to escape the city

5 Best UAE day trips to escape the city

September 28, 2022
UAE travellers alert: Passengers must declare cash and items worth more than Dh58,000 when visiting Saudi Arabia

UAE travellers alert: Passengers must declare cash and items worth more than Dh58,000 when visiting Saudi Arabia

September 27, 2022
No Result
View All Result
  • UAE
  • News
  • Entertainment
  • Sports
  • Business
  • Lifestyle
  • Food & Drink
  • Expo 2021

© 2021 UAE24X7