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Phone: (713) 681-2500

Fax: (713) 684-1600

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STORM SEASON
Important Note:

June through November our agency may become prohibited from binding coverage should a “Tropical Disturbance” enter the Gulf of Mexico or Caribbean Sea.

In these cases we may be unable to bind new coverage quoted in open proposals until the storm leaves our area and our binding authority has been restored.

Please arrange your coverage protection early to avoid this type of delay. While we regret any inconvenience, the carriers impose these restrictions on all agencies.

Watch Out For Being Over-Insured With These Handy Tips

Watch Out For Being Over-Insured With These Handy Tips

Here’s one of the core things we help our clients with. Understanding how to minimize personal economic dangers via insurance coverage. For example, the sudden death of a close relative can have a significant negative impact on your family’s financial well being. Having adequate life insurance can help address this. Your home might catch fire. Adequate homeowners insurance offers critical protection. And of course having appropriate auto insurance protects you from a loss in case your car is totaled.

It’s important to have insurance to protect against all of these different threats. But there is a cost to being over-insured… and not just in having a higher insurance premium. So here are a few tips to help you keep this from taking place.

Car insurance.

Having appropriate liability insurance on all your vehicles is critical. However, having collision and/or comprehensive insurance on a vehicle with a low resale value that’s also paid off isn’t helpful. Here’s a way you can test your need. If your car was in an accident could you afford to replace it without negatively impacting your finances? If yes, scrap the unnecessary coverage and pocket the savings.

Homeowners insurance policy.

Do you know how much it will cost to rebuild your home if it were to face devastation? This isn’t the same as what your home might be worth if you sold it tomorrow. Remember that the cost of land doesn’t factor into having adequate home insurance protection.

When you buy insurance for your home or condo, you are seeking the needed coverage in case the house (or a part of it) has to be replaced. This should be 1-for-1. For example, if you have a home that is carpeted, you wouldn’t pay for insurance that would replace the carpets with hardwood floors. When insurance is called upon, the coverage must be like-for-like. Making certain you have appropriate coverage can lower your total premiums.

Life insurance.

One of the biggest areas where folks are often over-insured is life insurance. Some folks view having a life insurance policy from a pride perspective. But do you really need a $1,000,000 policy? Carefully reviewing your needs is critical to avoid spending too much on life insurance. Having the right mix of insurance including term vs. whole can also offer savings.

Another thing to watch out for is costly riders. While there are too many to cover in detail here, riders add costs. It’s important to make certain that whatever riders you choose, they meet your unique needs.

Final Thoughts.

For the most part, being over-insured drives up the cost of premiums while offering you little genuine benefit. Eliminating these costs can help you save hundreds of dollars (or more) each year. Shifting these savings towards other goals such as investing can help you build financial security. This can include setting aside for college or retirement.

The best time to address insurance is when life circumstances change. Recently married? Having a child? Perhaps you’ve just received a big promotion? You may have won the lottery. Leverage these big life moments to be 100% certain you have adequate protection. As we review these life changes with you we’ll help you understand cost-savings opportunities. This includes making sure you avoid being over-insured. Contact us today for a complete review of your risk profile and insurance requirements.