The Insurance Information Institute published an article and a video recently about the 5 Biggest Mistakes People Make with their Insurance. This important information is below:
NEW YORK, February 5, 2013 — Facing higher tax rates, sluggish job growth and a faltering economy, consumers are reevaluating the way they spend their money. There are many smart ways to save on homeowners and auto insurance, but making the wrong choices can result in being dangerously underinsured, according to the Insurance Information Institute(I.I.I.).
1. DON’T: Confuse Real Estate and Rebuilding Value
Insuring a home for its real estate value instead of for the cost of rebuilding is false logic. With home prices still down in many parts of the country, you might think it makes sense to reduce the amount of insurance on your home, too. But insurance is designed to cover the cost ofrebuilding your home Make sure you have enough coverage to completely rebuild your home and replace all your belongings in the event of a disaster.