Whenever you are given the chance to save money during very stressful times, it always feels rewarding and creates a sense of safety. Part of shopping around is the way to reduce your insurance coverage amount, and it becomes easy to just focus on the numbers. Reducing the amount of coverage or dropping pertinent coverages altogether is a bit like being on a diet minus the cardio: the results may not actually be too stellar! One of the risks you do NOT want to take is to be dangerously underinsured and on the hook for much bigger bills in case a serious disaster occurs. 

With some of the issues we have noticed lately here at the Alexander Insurance agency of St Charles being strictly revolving around current trends and the economic climate, these are still a few recommendations we can make that will protect you from suffering the consequences of a bad choice. Here on our blog today we will share with you the five most common auto, flood, and renters’ insurance mistakes that you’ll want to be sure to avoid during 2022.

The Various Ways to Safely Cover a Dwelling: When the price of real estate goes down, some homeowners may think that they can reduce the amount of insurance they take out every month. The insurance’s prime purpose is to cover the cost of rebuilding, not the sales price that the home would generate on the current market. It is recommended to have enough coverage to entirely reconstruct the home and replace all your belongings and raising your deductible can save you a healthy fraction on your necessary premium payments. 

Going with a Company as a Direct Result of Price: We know just how important it is to look down at your balanced checkbook every month and see that every choice you made has saved you money and left you with at least a bit left to spend on your monthly needs. Even if who you choose gives you an amazingly low rate, it is important to know that they should provide stellar customer service and handle all claims quickly and with fairness. 

The Mistake of Foregoing Flood Coverage: When the rains pour with a fervor and you realize that you may have sustained damage where you live, it is not always covered under your standard homeowners’ and renters’ insurance policies. 25 percent of all flood losses will happen in areas previously determined as low risk, and sudden melting along with constantly changing weather patterns can rapidly cause flooding. While you are in the process of buying a home, you can check with the NFIP to see if a property you have a vested interest in is in a flood zone, and if it is, you can opt for a purchase that is in an area bearing less risk.

Purchasing the Bare Minimum for the Drive: Once you get behind the wheel of a car, every state has mandated the bare minimum of what you can have to drive on the road, and still be legal if pulled over. If you abide by only the lesser value of what it takes to be legal, you could incur a high amount of expenses that will mount greatly if you are involved in a lawsuit later. One valuable tip here is to keep in mind that if you drop collision and comprehensive coverage on older cars that are now commonly seen on the road, we recommend carrying a minimum of $100,000 of bodily injury protection per person and well over $250,000 per accident for coverage. Not Purchasing Renters’ Insurance: The all-important renters’ insurance policy will cover your possessions and any additional expenses for living if you must move out due to a disaster covered under the policy guidelines. With fires becoming more and more common in many areas of the nation, this can protect you greatly if you have an injury in the home and a lawsuit is filed. If you purchase several different policies with the same insurer such as us here at Alexander, you can enjoy savings and the beneficial coverage of renters, auto, and life insurance while being able to know you will not have to endure any hardships without being taken care of by the best in the business. As the spring season is here and so many people are moving, graduating, and making other very important life decisions, we can consult and guide you while providing the savviest and most thorough coverage for your future!