The very wealthy can afford high deductibles on their car insurance and still carry insurance for catastrophic losses. Although rare, expensive losses can wipe anyone out financially for an extended period. This coverage is less expensive because of the low frequency and low probability of occurrence. Raise your deductible if you want to save money. It can also pay for the minor to moderate losses and get coverage for rare and catastrophic ones. Consider how much money you can get from your policy in case a catastrophic failure occurs.
Insurability in the Future
Almost all insurance applications ask about the length of time you have continuously maintained coverage. Insurance companies ask this because they consider someone who has continuous coverage a reliable and stable risk. If you jump in and jump out the insurance market, you present a degree of uncertainty to the insurance company. Not having insurance for a long time and suddenly buying it can make the insurance companies suspicious. They will think that you have plans to file a claim soon. Even if this is not true, you may face some skepticism when you want to go back into the marketplace. If you get a coverage during this time, it may cost you a lot more than if you continuously maintained your protection.
You should consider the benefits of liability coverage as part of your home insurance policy even if you are comfortable in rolling the dice and taking your chances with your property. If another party sues you and you are involved in a claim, you will expose all of your assets in case there is a serious lawsuit has a judgment against you. A great benefit of liability insurance is that it also provides legal defense in case someone sues you. Most of the time, the cost of hiring a lawyer to represent and defend you may be more expensive than the judgment itself. You may bear the cost on your own without liability insurance. Also, you might pay a higher rate to a lawyer who may have negotiated lower rates with insurance companies. Liability coverage is often less expensive compared to property insurance so avoid giving up $1 million in coverage so you can save a few hundred dollars every year.
Before deciding if you want to drop your home insurance, think of the potential worst-case scenarios. It should be a very simple decision in the end.
At Western Pacific Insurance we make sure our clients are well protected at prices they can afford. To learn more about how we can help you please contact our agency at (303) 904-3777 or Click Here to request a free quote.