Most people realize that insurance is a crucial tool for protecting their assets and their finances. But, many people are uncertain about how much insurance to buy. Other Arizonans may not have enough insurance for that very reason. Homeowners insurance, renters insurance, and auto insurance are three areas where people can underestimate their needs, usually by forgetting to calculate the true replacement cost of their property.
Homeowners and Renters Insurance
The good thing about renting is that most property management companies make their tenants buy renter’s insurance and specify how much the tenant has to buy. Beyond that, your only decision is whether to buy the minimum or buy more to protect their property.
With a house, the decision is more complicated. The Insurance Information Institute offers several pieces of advice. The age of the home and special features that would need to be reconstructed also can add to the home’s value. You need to account for all of your possessions as well. If you had to replace most of your furniture and electronic devices, how much would that cost? If you turned an unfinished attack into a third bedroom, how much would it cost to redo that work?
Auto Insurance
If you need auto insurance in Glendale AZ you should consider three key factors. First, think of the deductible. The higher your deductible, the lower your premium tends to be. At the same time, a higher deductible leaves with a larger bill after an accident. So, the second thing to consider is your financial situation. Can you easily put aside $2000 to cover a high deductible? If your car is extensively customized, you want to have enough insurance to cover that work if the car is destroyed or stolen.
Everyone in Arizona needs renters or homeowner’s insurance. Everyone who drives a car should have adequate auto insurance. This means you need insurance the goes beyond legal minimums and provides enough money to replace lost or destroyed property.
