Avoid Underinsurance

One common mistake people make is underinsuring, where they opt for cheaper premiums but don’t have enough coverage when a claim is made.

• Tip:
  Don’t skimp on essential coverage—Ensure you have enough coverage for significant risks like health emergencies, property damage, and liability. For instance, underinsuring your home can leave you exposed if a disaster occurs.
  • For Auto Insurance: Avoid getting the minimum liability coverage required by law if it doesn’t provide enough protection for your assets.
  • For Homeowners Insurance: Make sure your policy covers the replacement cost of your home and possessions, not just the market value.