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5 Common Insurance Mistakes to Avoid

5 Common Insurance Mistakes to Avoid

Unfortunately, the average American lives such a busy lifestyle that they are willing to just sign the paperwork of all insurance policies as recommended by their agent. However, in order to receive optimal peace of mind in your home, health, car, and life, you must have the right insurance policies in place. Proper coverage can mean the difference between financial ruin and smooth recovery when an accident occurs. Gathered is a list of some common insurance mistakes many people make, and how to avoid them:

  1. Many homeowners who have experienced a drop in their home’s market value think that as a result, they should mirror their homeowners’ insurance coverage. However, this can prove to be consequential. This mistake could leave you in financial ruin since your policy will no longer cover the amount it would take to rebuild after a disaster.
  2. While you may be inclined to work with any insurance company who has the best price, this may result in regret in the future. You want to find the best price, but with the right insurance provider who will be there with you through each claim and each renewal.
  3. Many homeowners fail to purchase flood insurance for a variety of reasons. Whether you think that your homeowners’ insurance policy already covers flood damage, or you feel that flood insurance is unnecessary because you live in a dry area, you will likely regret this decision once a flood arrives. Floods are known for wreaking havoc in neighborhoods that do not usually experience flood conditions.
  4. While you may think the state has put in place the minimum required auto liability insurance because it is a sufficient amount, it is likely not going to suffice. If you are involved in a multi-vehicle car accident, the minimum liability amounts will likely leave you with a hefty amount of out-of-pocket expenses.
  5. Whenever you are renting, you must purchase renters insurance. This is an inexpensive insurance policy that provides you with optimal protection from a variety of perils.

Contact Dean Davis Insurance in Austin for all of your Texas insurance needs. These very common insurance mistakes are preventable if you have the right insurance policies through Dean Davis Insurance.