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Choosing The Lowest Insurance Cost Likely Isn’t Your Best Plan

We’re flooded daily with insurance commercials claiming that shopping with them will get you the lowest insurance premiums of any company out there. Saving money on your insurance is important, but the lowest insurance premiums are usually accompanied by the lowest insurance coverage.

Determining what insurance coverages you need is something that only a qualified local insurance agent can help you decide. We care more about you being covered adequately than simply giving you the cheapest premiums.

Do you need the auto insurance coverages below? Discuss with us & we’ll help determine what makes the most sense for your personal needs.

Collision Coverage: protection for your car from damage whether at-fault or not. Premiums weigh heavily on the value of your vehicle.

Comprehensive Coverage: pays for damage to your vehicle from things such as contact with an animal, fire, theft or vandalism.

Medical Payments: Commonly known as MedPay or PIP, this covers medical bills as a direct results of an accident regardless of fault.

Uninsured Motorist: Coverage for being involved with an uninsured driver. Both physical damage (your car) and bodily injury are offered.

Underinsured Motorist: Coverage to help cover a gap from a motorist who has insurance, but not enough to cover the loss.

When deciding on what coverage options to have, take these situations into account:

Scenario 1: You purchase a low cost, low coverage liability policy with only $25,000 in Property Damage. You rear-end a new, two week old Toyota Camry totaling the vehicle. The Camry’s replacement cost is $35,000. You have to pay $10,000 out of pocket.

Scenario 2: You are t-boned by an uninsured motorist and have extensive medical bills in excess of $50,000. You do not have uninsured motorist coverage or personal health insurance and your auto medical payments only cover the first $10,000. You have to take the uninsured driver to court to pay your $40,000 in medical bills, in the meantime, you’re responsible for the $40,000 in bills.

Regardless of whether you’re shopping for a new home, auto, boat or motorcycle insurance policy if you want the lowest insurance premiums you should be aware that you’re usually lowering the amount of insurance coverage you have. Depending on your situation, this may not be a wise decision because it puts your financial future at risk by carrying low limits. As always, reach out to Heuer Insurance Agency for all your insurance needs!

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Named Perils vs. Open Perils Policies for Your Home Insurance. What’s the Difference?

There are many coverage options to select from when shopping for your homeowner’s insurance. You need to decide on your level of coverage, whether you want a larger monthly payment and smaller deductible or vice versa. You also can decide to add flood or earthquake coverages if you live in an area prone to these events. Your standard homeowner policy is called an open perils policy and includes many types of events.  But did you know that you can choose to have a “named perils” policy also known as a Broad Form insurance policy?

So, how exactly is Named Perils and Open Perils different when related to your homeowner’s insurance policy in Nevada:

  • A peril is an event that results in the loss of property, structure or damage to the structure.
  • Named Perils refers to specific events that you would like covered until your policy. Named peril policies are your traditional home insurance policies. Recently, HO5 policies have come around and they are Open Peril meaning they cover more losses your standard home insurance policy may not cover.
  • A Named Perils policy may save you money, but that is because you’re carrying more risk. Not every situation regarding a loss will be covered. Personal effects are covered under a named perils policy for the type of loss you’re getting coverage for such as wind and hail; however you may still need to have additional coverage scheduled for pieces like heirlooms, art, jewelry and other losses that may occur.
  • Both types of policies may elect to cover events like wildfires or tornado damage, but earthquake and flood insurance will need to be purchased separately.
  • Open Perils policies will clearly list what is excluded, while a Named Perils will clearly list what is included.
  • Open Perils will typically include most of the Name Perils options.

To give an example of how these two differing policies work, let’s use the following example. Sarah came home from work to notice that her necklace had broken and fallen off of her and was now lost. Because her loss was not related to a specific loss of wind, fire or damage to the house, this loss would not be covered under a named perils policy. If Sarah had an Open Perils policy that included the loss of valuable items, her loss would be covered (up to the policy limits for jewelry in the case). It is always important to note the policy limits of an Open Perils policy for jewelry, furs, art or other high-value items.

Homeowner’s insurance can be confusing, but your local, independent agents at Heuer Insurance Agency are here to help.

Heuer Insurance Agency in Sparks has worked with a variety of clients in the Reno area over the years and we are confident in our ability to meet your personal or business insurance needs. We understand how important an insurance policy can be and we take time to match each of our clients with the perfect insurance policy. Whether you are looking for auto insurancerenters insurancehomeowners insurance, or life insurance we can help you. Not only can we provide you with each of these personal insurance policies, but we can also help you find a general liability policy, workers compensation policy or commercial building insurance policy. Give us a call at 775-358-5554 or visit us.