Considerations for Protecting Your Toys and Treasures
A lot of what we do revolves around our stuff. Our personal property that we love and cherish. We took advantage of discounted prices and made purchases of items that we absolutely adore.
Unfortunately, sometimes our enjoyment of our toys is interrupted.
There we were, on vacation. The water was so clear. A photo with the latest camera that takes the best picture jumps out of your hand and into the beautiful blue liquid. Wow! Did that just happen? What now? A quick call to your insurance agent eases your mind. Your smart spouse put the camera and a few other items on a special policy that covers incidents like this. Said “genius”, chose a policy with no deductible. You will be fully reimbursed.
Contacting your insurance company is the absolute best way to educate yourself on expectations in the event of a situation that costs money and causes aggravation.
The beginning of the new year is a great time to assess how much coverage you have and how much coverage you need. A discussion about deductibles may also be in order. The higher your deductible, the lower your premium. If you have a loss that is under your deductible, do you have proper savings to replace the item or make the needed repairs?
Consider obtaining a certificate of deposit in the amount of your deductible. If something happens, you have the funds to take care of the damage. If nothing happens, the CD will increase in value, and you may have saved money on your insurance premium.
It sometimes surprises people to really understand that insurance companies are not nonprofit organizations. The premiums you pay are not set aside just in case you have a claim. Every day, someone has a fire, an auto accident, or other covered loss that everyone’s premium is used to restore the insured. In truth, some customers have a legitimate claim after paying one month of premium. Other customers pay insurance premiums for many years and never have a claim. In the case of huge claims that total millions of dollars in damage, everyone may pay some of the cost of repairs in the form of higher premiums. When repair costs increase and the cost of replacing items skyrockets, everyone may feel the pain of higher premiums. Call your company to see what factors are involved in your rates. Research the factors that can reduce your premiums.
In many cases, you do not have to have insurance. If you have a vehicle that does not have a lienholder, you decide if it is worth it to keep the physical damage coverage. If the vehicle is stolen or vandalized or if you have an accident and you are at fault, do you have to replace the vehicle? What is the value of the vehicle? Can you afford to replace or repair the vehicle without assistance from the insurance company? Sometimes you just feel better knowing the coverage is there. Sometimes it is wiser to adjust the coverage and pay a lower insurance premium.
We love our stuff. Our toys bring smiles and joy. If something happens, we need to take a moment to figure out how much we are spending to replace items.
Get what you need. Know what you are insuring. Be prepared if you need to use it. Understand when the coverage is necessary and when it is a choice that provides peace and confidence.
