As I mentioned last month, there are three important things to note about your insurance. The first, as we’ve discussed, is a good agent — preferably an independent one. The second important consideration, and one I’ld like to address here is your insurance contract – because contracts are all different.

We know contracts are different, that’s why lawyers have jobs. But low-cost/low-coverage insurers would like you to believe insurance contracts are standard so all you need to do is compare price. That’s when gaps can appear in your coverage.

One of my clients thought they were getting a good deal on their existing homeowner’s policy until I told them their $1.3mm house was insured for $600k. Another thought they had full replacement coverage then learned their contract “replacement cost” was limited to 400% depreciated value. Small business owner policies (BOPs) not only have different contract terms, but have different types of insurance, with different limits and deductibles, packaged together in the master contract.

Bottom line: when you compare insurance contracts properly you are comparing a lot more than price. But you don’t need to be an insurance guru, you just need to find an expert independent agent you can trust.

Thanks for your support and referrals.

Make it a great day!