Both over- and under-insurance may be very costly, but in different ways…
Spending more on homeowners’ insurance than is necessary is a waste of money but going without enough protection might have far more severe financial consequences. So, what is the difference and how do you get your coverage just right?
OVER-INSURANCE
When a homeowner over insures, they insure for a larger amount of their home's value than it would take to rebuild it. Over-insuring raises your annual insurance premium without providing any additional protection.
UNDER-INSURANCE
Under-insurance occurs when the building sums of a home insurance policy are lower than the rebuild cost of the insured property. Although the premiums for under-insured policies are lower, policyholders in this situation expose themselves to a substantial risk of financial loss as the insurer will apply average to a claim in the event of a loss. If this the case you will end up carrying a portion of the claim yourself.
HOW DO YOU GET YOUR COVERAGE JUST RIGHT?
If you want to know how to get the right insurance coverage for your home, there's no substitute for getting good advice from an experienced insurance agent. If you are in the midst of shopping around for insurance policies, take the opportunity to consult with Ngenious Business Solutions; it might save you a significant amount of money.
We believe that the risks faced by each business and each individual is unique. We believe in providing each business, each of our clients with a comprehensive insurance solution that addresses their own unique and individual risks. A solution that will fit into your budget and not break the bank.
011 760 2124 │ admin@ngenious.co.za │ www.ngenious.online
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