Are You Under-insured?
Are you among the UNDER-insured population?
Numbers of reports indicate that:
· 66% (2 out of 3) of homes in the US are under-insured
· 12/6% (1 in 8) motorists have NO insurance at all
Why does this happen?
In some cases, people can't afford that amount of insurance premium, opt for a lower amount, and take the risk of nothing happening to need it.
BUT in many cases, people don't regularly review their policies. They fail to realize over time their policy coverage doesn't keep up with rising replacement costs and inflation.
What are the consequences of being underinsured? Here are 3 examples
1. A homeowner only purchased the minimum amount of insurance required by their mortgage lender. A natural disaster, such as a tornado, caused extensive damage to the home. The homeowner was underinsured and unable to restore his home to its original value because his policy didn't cover replacement costs.
2. A car owner purchased only liability insurance. His car was stolen and he was not able to recover the value of his car because liability insurance doesn't cover theft.
3. A renter decided not to purchase renter's insurance. A fire broke out in his unit, causing a total loss to the renter's personal property. Without insurance, the renter had to come totally out of pocket to replace his items.
When is the last time you reviewed your policies with your insurance agent? If you haven't evaluated your situation in at least the last year, it's time!
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