Harris, Reed & Seiferth
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You’ve purchased your home. You’ve purchased insurance to protect it in the event that it suffers damages or a complete loss. Unfortunately, many people too often make the mistake of buying whatever is the cheapest, assuming that all Homeowners policies are the same. When you’re reviewing the details, you’ll notice that you’re covered for actual cash value or full replacement cost -understanding the difference will help you to identify the coverage that you need.
When your insurance company pays to get your home back to the state it was in before the claim, this is called full replacement cost. This is why your home is usually insured for a lot more than you actually paid for it as building rates and materials are constantly increasing and must be factored in to rebuilding your home - costing much more than it originally did. Contrarily, when your insurance company pays actual cash value, they are only paying what your home was worth at the time of the loss minus any depreciation. For example: say that your California King was burned in a covered firm claim. You would get a new bed in the same style and value as the original was bought in if you have full replacement cost insurance. Essentially, you would be getting a brand new identical bed. On the other hand, you would only get what your bed was worth at the time of the fire if you have actual cash value insurance. Does that make sense? Harris, Reed & Seiferth Insurance Group is an independent Agency that shops to find you the best value for your insurance dollar. No compromise in coverage or quality, and at renewal we shop again to insure our clients are still receiving the best value for their insurance dollar. If you have more questions, give us a call today to learn more and get a quote. Call us today for a quote! Harris Reed & Seiferth Insurance Group Office: 561-768-8176 www.harrisreedandseiferthinsurancegroup.com
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Do you only consider price when buying dental insurance? Do you only consider price when buying any other insurance product? You should never base your insurance purchases only on price. Instead, when purchasing Dental Insurance, as with any other purchase, you should assess your needs and then assess the product. This will help you to identify if the product meets your needs and most importantly, if it is within your household budget. No surprises. No coupons. Not just a discount, but real insurance for real assistance with the unexpected costs of dental care. EVALUATE YOUR NEEDS When evaluating your dental needs, you’ll first want to determine who needs coverage. Will it be just yourself? Your spouse too? Regular dental exams and cleanings are preventive services that everyone needs at any age. Do you have kids? If you choose to add them, your dental coverage would cover them from birth until their 26th birthday. Simply put, your goal should be to determine anticipated dental services. For example, heading Toward Retirement? You are more likely to require complex dental services, such as dentures and bridges, as you approach your golden years. If you’re like many adults over 65, dental insurance isn’t a part of your health coverage, even for those with Medicare. Whether you have your natural teeth, implants or dentures, dental insurance can help you take control of your oral health. If you are a healthy twenty-something, you may be less likely to need complex dental services. No matter your age, we have a dental plan for you. IDENTIFY THE PLAN THAT FITS Once you have determined the dental services that you are most likely to need, you’ll be better suited to choose a plan most appropriately designed for the coverage you need. Covered dental services are sorted in various plans by levels, typically three or four. It is important to keep in mind that each one is different and must be examined closely to thoroughly understand what is covered. You will see things like deductibles and coinsurance, the coverage level or percentage with a list of covered services per category or classification, the plan’s annual maximum benefits amount, and required co-pays. New college graduate? Expecting your first child? Retired and on a fixed income? Talk to us. We’ll help you find the best coverage for your situation. No group? No problem. If you are self-employed or if your employer doesn’t offer group dental coverage, an individual dental plan can help you keep your mouth healthy. ASSESS THE TYPES OF PLANS Would you prefer to submit your claims yourself and be reimbursed? Or would you prefer to pay the dentist and have them submit your claims? How you want your claims paid can also help in choosing a plan type. For example, PPO claims will be paid to the dentist, but some indemnity plans won’t. Something else to consider is how the plan reimburses not only in-network claims, which eliminate balance billing and significantly reduce your out-of-pocket cost, but also out-of-network claims - things always happen so you always want to prepared. Here is where you’ll want to pay close attention to network access and which type of plan is best for you. Some plans even offer convenient Vision coverage as a ryder to the dental coverage. Other health care coverage such as critical illness, disability insurance, as well as others, can often be added as a bundle for discounted rates. ANALYZE PROVIDER NETWORK ACCESS Participating network providers charge a discounted rate for covered services, thus helping to reduce your out-of-pocket expenses for dental services. So start by finding out if your preferred dental provider participates in the plan’s dental network. If you don’t have a dentist, start by taking a look at the plan’s provider network directory in your area. If you go this route, a good idea would be to compare the provider directory to other plans and carriers to find the network access you prefer. Also, some dental insurance plans don’t pay any benefits to out-of-network dentists at all, or pay less. But if your preferred dentist isn’t part of the network, that’ okay. We’ve got a plan for that, too. Thoroughly check your plan and ask questions before you buy. Finally, if you stay in-network, you often won’t have to deal with submitting claims yourself. The dental office and your insurance provider will handle that. If you are out-of-network, you may have to submit your own claims and wait to be reimbursed. CALCULATE THE NUMBERS Now it’s time to compare plan pricing. Is the monthly premium within your budget? Is there a similar plan for a lower cost? Also, consider what out-of-pocket costs you will incur after insurance benefits are paid. These are all important aspects to analyze before making your final decision. If you have any questions, you should call a carrier’s customer service department or licensed health insurance broker for answers. Or just ask us. Submit your dental insurance question here. Our dental plans start as low as $16/month! Click here or the icon below for an instant dental quote in under 30 seconds! Harris Reed & Seiferth Insurance Group
Office: 561-768-8176 www.harrisreedandseiferthinsurancegroup.com Buying insurance can be a tricky purchase - but it doesn’t have to be. Simply put, some areas of your insurance policy will just require extra attention to avoid weaknesses in your coverage. Here are some of the major coverage mistakes we’ve seen here at our agency. Not Insuring Your Home For Replacement Cost
Do you think you only need enough coverage to insure your home for the amount you paid for it? If you said yes, well, that’s just not true! You need to be insured for the amount of money it would cost to REPLACE your home, not the amount of its actual cash value which will include a deduction for depreciation. Think of it this way: the total cost of replacing a home could be tens of thousands more than the house would have sold for on the market, cash value. So, what if a fire or tornado destroyed your home and you’re currently only insured for the cash value? You could be at risk! Buying Lower Deductibles and ACV on Contents There’s really only one way to save money on your homeowners insurance: raising your deductible. Insurance companies typically overcharge for lower deductibles - but that's what policyholders buy and accept risk in other areas. The savings actually rack up though as you instead, RAISE your deductible! For the average policyholder paying $3,500/yr premium for a homeowners policy with a $1,000 deductible, moving up to a $7,500 deductible (if you can afford it), saves $800/yr. That’s almost 25%! Think of the commercials about trying to save 10, 15, 20%. $800/yr savings amounts to $8,000 in 10 years, so the policyholder that has 1 claim in 10 years breaks even. The average claim frequency for homeowners is closer to 6%, or every 16-17 years, so, a homeowner that has 0 or 1 claim is ahead of the game with the $7,500 deductible. You only lose if you have 2+ claims over 10 years, which is a much smaller group. Analyzing the math, 88-90% of the time, a homeowner with a $7,500 deductible will break even or save $8,000; there’s a 10-12% chance you lose about $8,000. Basically, you’re 4-5x more likely to win $8,000 than lose $8,000, and a third of the time, you break even. Assuming you can afford the loss when you lose some, it makes a lot of sense to take a higher deductible. The risk is much lower than the typical ways you save money like deciding to not have full roof coverage or having ACV instead of RC on your contents. That’s risky!! In this case, you know your downside and there’s a cap on it. It’s relatively limited vs. what you can win. This is a much better way to save but very few do it. People who work in the insurance industry usually buy homeowners policies with high deductibles because they understand the math to which the average consumer simply is not privy. Buying The Cheapest Policy When you shop for insurance, do you settle for choosing whatever is the cheapest? Cheaper isn’t always better. And if you’re looking to save money, you have to be sure you’re doing it smartly. Start with a reputable company; you want to buy from a solid insurance carrier that you can trust to pay your claims. You’ll also want to be sure that you’re comparing apples to apples. If you’re buying for your home, ask yourself if the cheaper policy only insures your home for cash value instead of replacement cost (like above)? Does one company exclude leakage of water but not cover it? These are the details that can often be missed or worse, misunderstood. Buying Only The Required State Minimum Liability Insurance While each and every state does have a required minimum amount of liability insurance to drive, it’s often not sufficient or helpful when you’ll need it. Selecting only the minimum could leave you open to a suit, wage garnishment, or even worse, the potential loss of an asset, like your home. You’ll want to be sure you’re discussing different liability amounts with your agent to see what is necessary based on your income, net worth, and liabilities. A bonus? It won’t be near as much as you might think! Buying Life Insurance Through Work Many clients initially were telling me that they have life insurance through work and weren’t interested in purchasing their own coverage. Huge mistake. Why? Well for one, gone are the days where people are staying at jobs for 30+ years. On top of that, if you develop health problems and leave your current employer, you’re at risk for possibly not being able to solidify coverage again! Purchasing your own life insurance, which is extremely affordable, ensures that you are covered no matter where you are employed or what health concerns you might develop in the future. It’s the smarter choice, right? Not Using An Agent The ultimate solution to avoid all of these coverage mistakes? Work with an insurance agent! As agents, we have vast knowledge on the details and can always find coverage that’s right for your specific situation. It’s our job to discuss different liability amounts and ensure that the one you choose is high enough, to explain the difference between actual cash value and replacement cost and make sure that your home will be covered at the cost to replace it after a loss, to help you put your own life insurance policy in place so that you won’t be at risk to lose it when you change jobs, and to make sure that you aren’t buying an inadequate policy that doesn’t protect you. Call us today for a quote! Harris Reed & Seiferth Insurance Group Office: 561-768-8176 www.harrisreedandseiferthinsurancegroup.com Thinking about purchasing life insurance? Worried that it might be too expensive for your family at this time? Overestimating true cost by at least 3x leads most of us to avoid life insurance because of the thought that it’s “too expensive”. So, let’s clarify! Insurance rates, as such with Life insurance, is determined by risks. As the risk of death grows, so does the cost. For the young and health, insurance is extremely inexpensive and can generally be acquired for less than $25 a month for a term insurance plan and less than $50 a month for a whole life insurance plan. These are the two main kinds of life insurance policies - term and whole life. Term insurance policies are only active for a set time period, or term, generally 10, 20, or 30 years and a shorter the term will yield a lower premium since the risk of death declines. Depending on the long term goal for individuals and families that need life insurance at the lowest price and have young children, a term policy may be a great option as it provides inexpensive coverage to protect the family just until the kids are grown. Be sure to keep in mind that you are in control of the amount of insurance you need, which is based on debt, household income, and how you would prefer your life insurance be used. For example, if you only require $50,000 in coverage, then you’ll pay less than you would for $500,000 in coverage. The ultimate way to make your life insurance align with your budget is to work with Harris, Reed & Seiferth Insurance Group, a local agency. We’ll run a variety of quotes at different coverage amounts and terms so you have several options. Remember, all variables can be adjusted to make the policy work best for YOU! We’ll look at your current age, health status, family obligations, and your long-term protection goals to recommend the best possible coverage. Call us today to schedule a free, no-obligation consultation and quote! Harris, Reed & Seiferth Insurance Group is an independent Agency that shops to find you the best value for your insurance dollar. No compromise in coverage or quality, and at renewal we shop again to ensure our clients are still receiving the best value for their insurance dollar. Isn’t that what you deserve? Quality service and insurance products throughout South Florida, including Palm Beach County, Broward County, Miami-Dade County, St. Lucie County and Martin County. Harris Reed & Seiferth Insurance Group Office: 561-768-8176 www.harrisreedandseiferthinsurancegroup.com There are a handful of variables that contribute to a financial plan's success, including a household budget, emergency savings, retirement savings, and - insurance! It is highly recommended to review the important parts of your insurance financial plan annually to make sure protections are in place.
Protect Your Assets! Your first thought when it comes to insurance should be protecting what you have, such as repairing your vehicle after an accident and replacing your belongings after a flood. When reviewing your financial plan, confirm that all of your valuable assets, such as vehicles, motorcycles, boats, ATV’s, homes, expensive jewelry and/or fine artwork, etc., are properly protected. Also, in reviewing your set protections, make sure you have a reasonable deductible and full replacement cost coverage. (Don’t panic! We explain all the details) Protect Your Funds! It’s unfortunately true - the most important coverage is usually the most misunderstood. When you are held responsible for an accident, your assets and money are at risk! What if your dog bit someone and you were sued? What if your teenager caused a major accident and you didn’t have enough liability coverage? Having proper insurance in place ensures that you are prepared for whatever may happen and the most important step is to look at how much you have to protect, or your total assets, and then create a plan to protect everything. Protect Your Family! Making sure your assets have proper protections is important but life insurance and disability income give utmost protection to your family if something happens to you. With these options, you can plan to pay off debt, pay for college, or anything else that is important to you so that it doesn’t become a burden on your family to take care of alone. We understand that all of this might seem like a lot for you to think about, but it doesn’t have to be! You can meet with our great local insurance agents once a year, or as often as needed when experiencing certain life changing events, and trust that all of these things are taken care of. Why not take a few minutes to schedule an insurance financial planning review with one of our agents? Call us today! Harris Reed & Seiferth Insurance Group Office: 561-768-8176 www.harrisreedandseiferthinsurancegroup.com Welcome to our new insurance agency blog! This is our very first post. We're not quite sure what we're going to write about here, but the plan is to create helpful content for customers and prospective clients about information that is relevant to you. We hope you'll come to view this as a top resource for keeping your family and your finances safe. Here are a few of the topics we may be writing about:
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