One of the most critical parts of setting up adequate insurance is the assessment of your assets. However, it seems that all too often, this relatively simple task is one that people don’t get right, and that can lead to problems if you need to make a claim through your Texas insurance agency.
Undervaluing property and valuables may mean that premiums won’t be so high, which is sometimes why people deliberately undervalue their assets. Conversely, over valuing your assets means you could be liable for higher premiums. You could also find, if you make a claim, that you have issues proving the claim, as an insurance provider is unlikely to pay out an amount that is higher than the value of the item you are claiming for.
Another common mistake people can make is to mistake purchase price for replacement cost. For example, when you buy a building – a house or a business site – the price you pay is the value of the whole property, including the land. However, when you insure it, it’s the building you will have to replace if it burns down. The land will still be there – so it’s just the replacement cost of the building you need to assess for insurance purposes.
Why not call our Texas insurance agency to discuss your insurance requirements? We can help you with information about assessing your insurance needs and the claim process so you can be quite clear how to go about setting up your insurance to ensure you have an appropriate level for the value of your assets.