Posted: September 1, 2013 | Tag: Miscellaneous
We’ll cover cost first, but I would suggest that it is least important. If you have a loss, what you paid becomes irrelevant; it is all about what parts of your loss will be covered and the service you get from both the insurance company and your agent.
Most insurance policies are very similar in regard to what is covered; it is when you get to the exclusions that the wheat separates from the chaff. As you read through the exclusions on a policy, make sure they aren’t so extensive that they offset any savings or negate anything you read at first.
When it comes to what’s important, it’s all about consequential damage. Here is an example: On my dock a few years ago, a boat sank — not all the way, but it suffered a lot of damage. The cause was a muskrat eating through a hose. The hose was covered but not the consequential damage. Ouch. Many insurance companies cover the damage from an animal, but many don’t cover the consequential damage. This is big. Find a company that covers consequential damage. Ask you agent about that specifically, if you find it important to have the coverage. You have a voice in the process; make it heard.