Finding the right insurance plan can be difficult. Here are the steps we suggest you implement before signing a contract.
Research the company
There are three things to look for in a company that take precedence over others:
- Legal existence within your state — they are properly registered and are up to date with all their fees.
- Contractor’s license — proof that they are licensed to perform as a contractor in your state.
- Litigation and bankruptcy—it’s a bad sign to have filed for bankruptcy in the past, as is any serious or ongoing litigation against the company.
If all these elements check out, then check out online reviews to narrow down your list of potential insurance companies to work with. Ask them to send you sample policies to review.
Determine your ideal premium to deductible ratio
Some people prefer high premiums because they can budget for them more easily than they can a high deductible. Others prefer a lower premium because they are less likely to make a claim and can save money. Determine what will work best with your lifestyle and seek out the policies that align with your needs.
Make sure you understand the coverage
When taking out an insurance policy, it’s easy to assume it will cover everything you might need it to. However, most policies have surprising exclusions, such as flood damage on homeowners insurance to pregnancy within the first two years on health insurance. Don’t allow yourself to be caught off guard.
Ensure that all data in the contract is accurate
Small errors can have a big impact. From terms that change between the draft and the final copy to misspelled names, these changes can result in less coverage than you initially thought you had, bigger payments and even denied claims. Go over your contract carefully and get someone else to review it too.
If you are struggling to evaluate your options, it may be best to work with an expert. An independent insurance broker can give you unbiased advice and help find the policy that works best for you.