Have you been struggling with your insurance premiums and do not understand why your policy is rising in costs year after year? When it comes to insurance rates, everyone wants reasonable policy costs, but sometimes property owners are causing their own rates to rise. To get the best premiums possible, doing a little bit of homework is the safest policy. To gain a better understanding of how you may have contributed to your high insurance rates and what you can do to stop this, keep reading.
Not Fixing Damaged Property Within a Reasonable Amount of Time
When you know that you will have to pay out of pocket for a repair to your insured property, you might delay making a claim or admitting to the insurance company that you had to have work done. Sadly, some property owners will wait too long to make a repair, and the insurance company can hold that against the policyholder. In most cases, delaying a repair of something like the home hardware can cause related parts to break down, and this ends up costing the insurance company more money to fix a future claim.
Having too Many Past Claims
One of the easiest ways to put your insurance rates in jeopardy is to make too many claims. Although some claims are not your fault, having too many attacks from Mother Nature can put your insurance premiums at risk. Unfortunately, in areas where natural disasters happen too often, insurance companies stop coverage in that geographic area and selections for policies could be supplemented by federal dollars.
Having Property that Has a History of Claims
When you do everything right, do not live in an area with a lot of natural disasters but something still does not seem to add up about your insurance rates, the problem could be the history associated with your previously-owned property. This is especially true with housing or commercial property, but it can also apply to certain items of value. For example, a house with a history of being hit by cars because it is built too close to a busy interchange will have a higher insurance rate. A painting with a history of being easily stolen will also have a higher premium than other types of artwork.
Forgetting to Pay On-time
Another obvious demerit for causing your insurance rates to skyrocket is associated with sloppy payments. Since you may only pay insurance periodically, it can be easy to forget to send in the check. Of course, the solution is to sign up for insurance payments to be automatically deducted from a savings account. In some instances, scheduling automatic payments can immediately reduce insurance premiums.
Having Contractor Work that Did Not Have Permits
When you file paperwork for a claim, they often include notes about whether or not un-licensed work has been done on your vehicle in the past. For example, a vehicle that has signs of DIY mechanic work may malfunction in the future and need to be addressed by a professional mechanic. When the work is complete, the fact that the previous job caused the current mechanical failure will make the insurance company frown on you. The same is true for property owners that do not have all repairs done by a professional technician that is insured, bonded and licensed to complete the repair with the correct permits.
Not Following the Suggestions the Insurance Company Gives You
Although many insurance policies give you a mountain of paperwork, it pays to read up on the information they send you. For instance, in the fine print of many insurance policies, they will have disclaimers. Within these disclaimers they may state that they will not cover property that has not been regularly maintained by a professional. This implies that policyholders will need to have their roof inspected twice a year with the proper paperwork to submit in case the roof needs to be replaced. Vehicle owners need to keep documentation that shows they take their vehicle to mechanic as often as recommended.
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