When it comes to purchasing personal insurance, basing your choice on the lowest premium is a fundamental mistake. And we’ve explained exactly why cost shouldn’t be the sole determining factor.
If, we’ve said it once, we’ve said it a million times. An inexpensive insurance premium can be the most expensive insurance you’ve ever had if you were to experience a loss.
The cost of insurance protection
As an Insurance Brokerage, we take pride in educating our clients on the cost of insurance protection. Here is the simple equation: premium + uninsured losses = cost of insurance.
If you are looking for the best price, you’re not necessarily receiving the best insurance coverage. When we purchase insurance the goal is to protect ourselves from accidental losses that we cannot afford to withstand on our own. Depending on individual financial positions, this varies significantly and ultimately is something that must be discussed in detail with your trusted insurance broker.
Selecting liability coverage for personal insurance
On a personal insurance policy, liability coverage is the portion of the policy that steps in should you be deemed responsible for causing a claim. Often, clients will advise they would like the lowest amount of liability insurance available, which is something we strongly discourage. As a brokerage, we’ve determined that anything under $2 million liability coverage is reckless and we’re strongly advising our clients to consider increasing their liability to a minimum of that.
Your options when it comes to insurance protection
You have options when it comes to selecting your insurance protection. Umbrella policies offer additional liability coverage - extending off of all your personal insurance policies. If you were to experience a significant loss, it’s intended to provide that extra security required.