Four home and auto insurance mistakes you might be making.

Insuring your home and assets can be a stressful and complicated process. Here are four common mistakes high-value homeowners make when it comes to insuring their homes and how you can avoid them.

MISTAKE 1️⃣    YOU ARE NOT CONSIDERED HIGH-NET-WORTH…when you should be.  

Being considered “high-net-worth” as an insurance customer requires you to meet a much lower threshold than you might think. Typically, a high-value home insurance policy should be offered if your home’s replacement value is greater than $750K. For anyone who’s been advised that they are not “high-net-worth” when the replacement cost of their home is equal to or greater than $750k+, you have been misled - and it may be costing you. You are likely overpaying for your insurance or receiving inferior coverage for the price you are paying. Luckily there are a number of companies specializing in high-value home insurance such as Berkley One, Chubb Insurance, Cincinnati Insurance, PURE, and Vault. In general, the coverage and customer service they offer exceeds what may other companies offer.

MISTAKE 2️⃣ YOU CAN SAVE MONEY IF YOU DO IT YOURSELF.

Partnering with an agent who has experience navigating high net worth insurance markets will save you time and money. Adequately insuring multiple expensive assets in a cost-efficient way can be complex. For example, many insurance providers offer premium discounts for the installation of updated plumbing and electric systems or the installation of water alarms. Furthermore, strategically bundling policies can lead to significant premium discounts. An experienced agent will have the knowledge and expertise to help you navigate these nuances to save you money and also advocate on your behalf. Furthermore, as discussed below, insurance needs are dynamic. A good insurance agent will be responsive to your needs and help you:

✅Determine what forms of insurance to purchase.

✅Understand the amount of insurance coverage you should buy to protect your assets.

✅Find the best policy terms and carrier to maximize the value you get for your premium.

✅Understand the details of your policy and how they affect you.

Finally, in the event that an insured asset is damaged or destroyed, your insurance agent can serve as your advocate as you move through the claims process. For this reason, finding an agent you can trust is essential. Purchasing a policy from an agent isn’t a one-time transaction. Rather, it is the beginning of an important ongoing relationship, and your agent should be treating it as such.

MISTAKE 3️⃣ YOU CAN SET IT AND FORGET IT.

Insurnace needs change over time. Unfortunately, many customers fail to regularly update their insurance coverage to reflect their current needs. The acquisition of new assets or performing home renovations can require substantial adjustments to an insurance policy. Ad, changes in the insurance marketplace and new premium philosophies at major insurers can significantly impact individual consumers. Reappraising how you choose to insure your assets will help avoid gaps in coverage and make sure you are getting the protection you need in a cost-efficient way. Some of the steps you should be taking include:

✨Reviewing your past, current and expected financial situation.

✨Working to maximize available insurance credits.

✨Evaluating the benefits of consolidating your coverage with a single insurance carrier.

✨Considering how any expected life changes may affect your insurance needs.         

MISTAKE 4️⃣   CHEAPEST PRICE WINS.

When insuring your home or another valuable asset, you should prioritize adequate coverage and good quality customer service instead of trying to find the least expensive policy. Cheaper insurance policies are often accompanied by low coverage limits or important exclusions that may leave you underinsured in the event of a loss. Some of the problems that customers can face when dealing with low-cost insurance carriers include:

❎Limited coverage options: Cheap policies may offer limited coverage options, excluding certain perils or types of property. Make sure the policy covers the specific risks and property you need to protect.

❎Poor customer service: Some low-cost insurance providers may not offer quality customer service or prompt claims handling. Consider researching the reputation and customer reviews of the insurance company to gauge their reliability and responsiveness.

❎A financially unstable insurer: Cheap insurance policies may be offered by less established or financially unstable companies. It's important to choose an insurer with a strong financial track record to ensure they can fulfill their obligations in case of a claim.

What are some Insurance trends you’ve seen lately that you have questions about? ⤵️

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NaVella was created out of equal parts love and frustration with the insurance industry, its complexities, and the ever-evolving market space.  We are on a mission to overdeliver and work with the most exclusive high-value insurance carriers in the world.

With more than 16 years of experience in multiple facets of this industry, 1000+ insurance policies analyzed and reviewed, and hundreds of customized insurance portfolios crafted, we are dedicated to giving you control over what and how you protect what you care about most. We are a woman-owned, progressive, independent insurance agency and consulting firm. We offer personal lines insurance solutions. Our product solutions include insurance for your: Home(s), auto(s), collection(s), Excess + Umbrella, boat, and term life. Our consulting and coaching services serve both personal and corporate clients. Headquartered in Massachusetts, and primarily focused on the Massachusetts and greater New England markets, we can write nationally.

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