Are You Properly Insured?
Insurance is one of those necessary expenses we have to live with.
Why? If you don’t protect yourself and the worst happens, you could wind up broke.
There are so many key issues when it comes to buying the proper property and casualty insurance policies. A lot of people don’t understand the scope of what they have, what it’s worth, and how much it would really cost to replace it. When identifying what kind of insurance you need, you should think about two things; First, you have to purchase enough insurance so that you’re fully covered if there was a natural disaster and your property was destroyed and you lost everything. And, you have to protect your assets from Liability claims.
You can get insurance that pays out the amount of the policy. Or, you can get Replacement Cost Insurance which, will pay to replace your building and or furnishings, even if it costs more than the stated policy amount. Insuring at Replacement Cost insurance is more expensive, but the coverage is worth it. And make sure your Liability limits are at the maximum allowed by the carrier to offer the best defense against a lawsuit someone has brought against you for personal injury.
Flood Insurance is important, too, but most owners of commercial buildings and homeowners mistakenly think their current Business policy or Homeowners policy covers them for floods. They are not. Standard flood insurance has to be separately written on a Flood Policy which is backed by the federal government. You are limited to $250,000 maximum amount on a Residential home, and $500,000 on a Commercial building. . However, if you desire more coverage, you may be able to find additional policies that will cover you above and beyond the government’s maximum amount.
The most important property and casualty coverage there is may also be the least expensive: Umbrella Liability Insurance. The Umbrella provides additional Liability protection if your Property Liability or Auto Liability limits have been exhausted due to a claim made against you. This is a very affordable and important coverage that can sometimes be endorsed onto the Business or Homeowners policy.