Don’t Risk Being Underinsured: Five Insurance Mistakes To Avoid

Too many Americans believe that the coverage limits of their homeowners insurance policy are linked to the market value of their home, according to the Insurance Information Institute.

In the I.I.I.’s 2011 Insurance Pulse Survey, conducted by the Opinion Research Corporation, nearly half (48 percent) of survey respondents came to that mistaken conclusion.

One out of three respondents to the Pulse Survey reported that they purchased less homeowners or auto insurance as a way to save money. A better strategy would be to take a higher deductible, which can substantially reduce insurance costs. Home and car owners can then put the savings into a purchasing the right amount and type of insurance for their specific needs.

Following are the five biggest auto, home, flood and renters insurance mistakes consumers can make, with suggestions to avert those pitfalls while still saving money:

. Insuring a home for its real estate value rather than for the cost of rebuilding. Home insurance is designed to cover the cost of rebuilding, not the sales price of the home. You should make sure that you have enough coverage to completely rebuild your home and replace your belongings.

A better way to save: Raise your deductible. An increase from $500 to $1,000 could save up to 25 percent on your premium payments.

2. Selecting an insurance company by price alone. It is important to choose a company with competitive prices, but also one that is financially sound and provides good customer service.

A better way to save: Check the financial health of a company with independent rating agencies and ask friends and family for recommendations. You should select an insurance company that will respond to your needs and handle claims fairly and efficiently. Bucci Insurance has been a leading insurance provider in Rhode Island for over 30 years.

3Dropping flood insurance. Damage from flooding is not covered under standard homeowners and renters insurance policies.Coverage is available from the National Flood Insurance Program (NFIP), as well as from some private insurance companies. Many homeowners are unaware they are at risk for flooding, but in fact 25 percent of all flood losses occur in low risk areas.

A better way to save: Before purchasing a home, check with the NFIP to determine whether the property is situated in a flood zone; if so, consider a less risky area.

4. Only purchasing the legally required amount of liability for your car. In today’s litigious society, buying only the minimum amount of liability means you are likely to pay more out-of-pocket if you are sued—and those costs may be steep.

A better way to save: Consider dropping collision and/or comprehensive coverage on older cars worth less than $1,000. The insurance industry and consumer groups generally recommend a minimum of $100,000 of bodily injury protection per person and $300,000 per accident.

5. Neglecting to buy renters insurance. A renters insurance policy covers your possessions and additional living expenses if you have to move out due to an insured disaster, such as a fire or hurricane. Equally important, it provides liability protection in the event someone is injured in your home and decides to sue.

A better way to save: Look into multi-policy discounts. Buying several policies with the same insurer, such as renters, auto and life will generally provide savings.

For more information visit Insurance Information Institute online or contact Bucci Insurance Group today!

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Avoid 5 Major Insurance Mistakes

Watch this video by the Insurance Information Institute. They offer five tips on how to save money and avoid mistakes that could leave you scarily uninsured.

Mistake #1: Insuring a home for its real estate value rather than the cost of rebuilding. Don’t be fooled by the decline of real estate prices, that doesn’t mean you can lower your insurance! Make sure you have enough coverage to completely rebuild your home and replace your belongings.

Tip #1: Taking a higher deductible could save you as much as 25%

Mistake #2: Selecting an insurance company by price alone. You want to choose an insurance company that is stable and has great customer service. Remember the saying, “You get what you pay for!”

Tip # 2: Ask anyone you know for recommendations

Mistake #3: Dropping Flood Insurance. This is not covered by your standard home owner’s insurance policy or your renters insurance.

Tip #3: Before purchasing a home, check with the National Flood Insurance Program. Check to see if your home is in a flood zone!

Mistake #4: Only purchasing the legally required amount of liability protection for your car

Tip #4: Consider dropping collision and comprehensive coverage on older cars and increase your liability on regularly used cars: $100,000 bodily injury and $300,000 per accident.

Mistake #5: Neglecting to purchase renters insurance.

Tip #5: Look into multi-policy discounts

If you have questions regarding any of these topics call Bucci Insurance and ask for any insurance discounts you are entitled to.

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Renter’s Insurance

School is just around the corner and if you’re like most of the students at the University of Rhode Island, the next few weeks will be an exciting time. Finally, moving back out of your parent’s house and into the one you and your friends are renting “down the line.” While you make your checklist of things to do/ buy before you move in, you might want to consider renters insurance.

Your landlord’s insurance only covers their personal belongings and property. In the unfortunate case of a fire, flood or robbery, renters insurance will have you covered and replace your personal items. Renter’s Insurance takes care of your furniture, clothing and most other items; your favorite diamond ring on the other hand, needs to be insured on its own.  Watch this short video from III for more details!

Here is your Renter’s Insurance checklist:

  • Estimate the value of your property
  • Do an inventory of all of your belongings
  • Take pictures (permanent records in case you have to file a claim)
  • Smoke detector
  • Good dead-bolt lock

The last two items may qualify you for a discount!

For more information regarding this topic, feel free to contact Bucci Insurance Group! They would love to help you.

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Purchase insurance and be covered for the unexpected

Back in April we heard the horrific story of an 8 year-old girl from Tennessee who was attacked by a pit bull on her birthday. The young girl received treatment at Le Bonheur Children’s Medical Center and is recovering well. She is receiving all of her school lessons at home. The big issue now is how will the girl’s mother, Elieen King, pay for all of the hospital bills? The children are covered under King’s ex-husband’s health insurance, but King still is nervous that she will have to pay some of the costs and she can not afford to do that.

King wanted to try to get the owner of the dog to pay for some of the bills, but there was one tiny problem, the owner of the dog has no homeowners insurance. The reason that she has none is because she is renting the place that she is living. King spoke with lawyers, but they told her that they could not promise to get anything from the owner of the dog.

Did you know that according to Insurance Information Institute, dog bites account for one-third of homeowners insurance liability claims? So how is it that people who have pets do not have homeowners insurance. Even if you are a renter, you can purchase renters insurance. It is the best thing to do to keep you safe. If the owner of the dog in this case had renters insurance, she might have been able to cover some of the little girl’s medical costs.

It is so important to make sure that you have homeowners insurance because the liability part of your insurance policy will help you in the event that you are sued on types of claims that are in your policy. Liability insurance offers the insured specific protection against third-party claims. People need to start to realize that anything can happen. No one can predict the future, so that is why you need to make sure you are covered for the unexpected.

Come to Bucci Insurance and talk to us about your homeowners insurance policy. We would be happy to discuss what your policy entails and how we can customize it specifically to fit your needs. It is our goal to protect our customers and the way we can do that is to set you up with the perfect policy.

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