How to Get the Best Insurance Coverage

You have all of the insurance policies you should, including health, homeowners, car, and life insurance. You may think you're protected as long as you carry each of these types of coverage. In reality, the quality of an insurance policy can affect the amount of benefits you receive in the event of a claim and whether you receive any benefits at all. It's important to review your policy and update it when necessary. For example, if you now have a family, have graduated from college, or you have developed health problems. If you have shoddy coverage, you're putting yourself at a significant risk financially. Read on to learn how to determine if you're carrying the best insurance coverage possible.

Assess Your Carrier

An insurance policy is only as good as the company that underwrites it. No matter how solid your policy is, your insurer's reputation can make or break your coverage. When determining if you have the best coverage, first consider the customer service reputation of your carrier. How has the company performed in policyholder satisfaction surveys like J.D. Power? What do other policyholders say about the carrier?

Next, consider the financial reputation of your carrier. If your insurer experiences financial problems, it could jeopardize their ability to fulfill the claims you make. Look into your insurer's financial health by examining their annual reports and checking their ratings on A.M. Best, Moody's, and other financial rating companies. You might also visit the website for your state's department of insurance to find out how many policyholders have issued complaints against the insurer.

Review Your Policy Exclusions

Every insurance policy contains exclusions, or events that it will not cover. For example, most homeowners insurance policies contain exclusions for natural-disaster related flood damage. Similarly, a health insurance policy might contain an exclusion for birth control. Review your policy carefully to find out what events it does not cover. You might be surprised at how many events are not covered. If you believe your current coverage falls short of your expectations, start looking for another policy that has more inclusive coverage.

Check Your Limits

Your insurance policy won't do you much good if you don't carry enough coverage. If you had a catastrophic loss and your coverage limits were too low, you risk losing your assets and possibly having to declare bankruptcy. For instance, if you carry only the legal minimum on your auto insurance liability, one accident-related injury lawsuit could devastate you financially. Talk with your agent or broker to see what he/she recommends for coverage limits. Usually, you can increase your coverage limits significantly for only a small increase in your premiums.