Denver Home Living Huettner Capital Fall 2018 | Page 8

DAVID HEAD OFFERS PERSPECTIVE ON COMMON INSURANCE MISTAKES A s 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 at- fault driver can’t, or the unidentified hit-and- run 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 8 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. 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 [email protected]