DAVID HEAD OFFERS PERSPECTIVE ON COMMON
INSURANCE MISTAKES scheduled personal property , can help provide greater protection for your most-valued belongings and provide you with the peace of mind that you will be reimbursed for the item ’ s full value if it is lost or stolen .
As a former insurance claims adjuster , David Head has witnessed firsthand the problems that can result for consumers that choose the wrong insurance protection . According to Head , the results can be costly . Not only could consumers be paying for coverages they don ’ t need but they could also wind up having to pay hundreds , even thousands , of dollars out of pocket should a loss occur that isn ’ t covered or when policy limits are inadequate .
Many consumers try to buy insurance online with minimal guidance , or from a “ captive ” agent , who represents just one company and may have sales quotas to fill . A better way to purchase insurance may be to work with an independent insurance agent that represents many different companies and has the flexibility to offer the consumer more options .
Head , who now owns and operates the independent insurance agency The Head Insurance Group , shares some other common mistakes people make when purchasing insurance .
NOT BUYING ENOUGH UNINSURED / UNDERINSURED MOTORIST ( UM / UIM ) COVERAGE . What happens if you have an accident with an at-fault motorist who is uninsured or underinsured ? If you have adequate UM / UIM protection , it may help cover your property damage , bodily injury costs , and out-of-pocket expenses when the atfault driver can ’ t , or the unidentified hit-andrun driver won ’ t — which also applies even if you are a pedestrian .
SKIMPING ON YOUR LOSS ASSESSMENT COVERAGE . As homeowners association ( HOA ) insurance rates continue to rise , numerous HOAs are trying to save money by raising their deductibles or lowering their liability limits and passing along responsibility for losses to individual homeowners . However , these individual condo policies can sometimes provide just $ 1,000 worth of loss assessment coverage per claim . Many condo owners often don ’ t realize how little it costs — about $ 20 more per year — to increase their loss assessment coverage to $ 10,000 .
NEGLECTING TO SCHEDULE VALUABLE ITEMS SEPARATELY . Anyone with expensive items — such as a work of art , piece of fine jewelry , or valuable musical instrument — needs to take the additional step of insuring them separately . Most homeowners policies have special limits for loss of high-value personal items , such as a $ 1,500 limit on what your insurance will pay for jewelry after a theft . An additional coverage , known as
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ALLOWING EMPLOYEES TO USE THEIR PERSONAL VEHICLE FOR BUSINESS . Many small business owners don ’ t realize that their company may be liable if an employee causes a motor vehicle accident while conducting company business . For example , suppose a business runs out of office supplies , so the owner sends her assistant to purchase supplies . On the way to purchase supplies , the assistant runs a red light and causes an accident . If the employee ’ s policy doesn ’ t have sufficient limits to cover the damages the employee caused , the company could get stuck with a hefty bill . Business owners should consider purchasing Hired and Non-Owned Automobile coverage to protect against this type of risk .
For additional information , you can reach David Head directly at : 303-955-2651 or David @ TheHeadInsuranceGroup . com