Risk and Insurance Planning

How Do You Strike The Right Balance Between Coverage & Cost?

Risk & Insurance PlanningReview Your Coverage Before A Claim Arises

Many people learn about their insurance coverage when they receive less than the full value of their lost or damaged property at the time a claim is settled or worse, denied. The stakes get higher every day as replacement costs rise and liability claims go through the roof.

We often assume we have coverage for a loss because it seems perfectly logical that if a loss involves your home or your car, it should be covered by those policies. Have you read your policies? They’re chock-full of exclusions, exceptions and conditional statements. Best not to assume coverage exists unless it’s confirmed.

  • Eliminate Gaps and Redundancies in Coverage
    • Make sure you are paying for coverage at least once, but not twice. Do you have towing through AAA and your auto policy? Should you buy the added coverage when you rent a car on vacation (you don’t want to have an accident in a rental car to find out!)? Does your credit card provide coverage on the rental car? Will your homeowner’s policy cover all the damages from a sewer backup or sump pump failure? It’s easy to overlook computers, musical instruments, jewelry, art, and antiques – make sure you know your policy’s limits.
  • Maintain Coverage Limits and Deductibles That Make Sense
    • Insurance is a way to shift risk and provide protection against the kinds of losses you can’t afford to self-insure. It often makes sense to apply premium savings from higher deductibles to pay for higher coverage limits or to add missing coverage. Be sure to know whether you have replacement cost coverage on your home and personal property instead of just amortized cost.

We live in a litigious society. Don’t underestimate the value of adequate liability protection. Your home and auto policies may have this coverage, but without the added coverage a liability umbrella provides, you may be putting your entire financial future at risk.

When it comes to property and casualty insurance, Open Range pays close attention to the details as part of your Open Range Wealth Management Solution. Working closely with your agent or, if needed, with a member of our network of trusted insurance professionals, to strike the right balance between coverage and cost that meets your family and business needs.