Every homeowner has insurance on his or her house, but what many fail to appreciate is that it is possible to be uninsured. In fact, being underinsured is common, and a homeowner may not find out about this problem until it is too late. The following are four ways you may be underinsured.
You're not insured enough for rebuilding costs
Many homeowners confuse the market value of their home with the rebuilding cost.
As you begin your search for cheap auto insurance, consider the reasons to consult an independent agent. Contracting with one of these licensed professionals has numerous advantages.
Providing Quotes From Several Carriers
If you prefer, you can get quotes yourself online directly from many insurance companies. That takes a good bit of time, however, especially if you want to compare various policy features. An agent handles all this work for you when you want to buy a new policy.
If you have recently financed a new vehicle or you have a car that has been financed for a long period of time, the question of insurance surely came up at some point. Although your agreement with the finance company may only require that you carry a standard, full coverage policy, doing so may not be in your best financial interests. Gap insurance exists to cover the monetary difference between what you owe on the car and what the insurance company determined its value was.
If you own a home, you need to not only be able to pay off the mortgage, but be able to replace your home if a catastrophe were to happen and your home were declared a complete loss. It is easy to forget how much time and money you spent getting into your home, but you are likely to remember that quickly when you are applying for a new mortgage. It is no longer sufficient to merely break even if the worst were to happen to your home; instead it is a good idea to carry homeowners insurance in excess of the actual value of your home.
If you are a careful driver who doesn't drive too much or too often, then use-based auto insurance may give you access to discounts not available to other motorists. Insurers who offer these services track different forms of data that allow them to gauge whether their clients are good drivers. If you want to enjoy the associated discounts, then you will first have to install the tracking device. Here are the pros and cons of these devices to help you make an informed decision: