Getting a deal on insurance isn't always a good thing. Unfortunately these things are not often thought about until a claim is denied and you are left paying for a big loss out of pocket. This is a review on some of the critical mistakes made by consumers before their claim is denied.
1. Declaring Modifications - Not just auto, but all insurance policies. If you applied for insurance your application was accepted assuming all things would stay the same. If you upgrade your engine or start selling unknown products, chances are a claim could not go the way you want it to.
2. Commercial VS Personal Use - Although you might save some money by having your business vehicle listed for personal use, chances are your insurance company won't agree with that decision. Make sure you honestly report what the vehicle will be used for.
3. Home-based Business - We used to participate in a local BNI chapter and couldn't believe how many people didn't have their business activities reported on their home insurance policy. It doesn't matter if you are cutting hair, storing inventory or building things in your garage, if an incident occurs as a result of an activity you are receiving compensation for, your claim could potentially be denied.
4. Commercial or Residential Rental Suits - Reporting rental suits is not only beneficial to you, but it is beneficial to your renters. Renters can't claim losses on your insurance and you don't want to be responsible for a claim resulting from your renters. Ask your insurance broker how to structure your insurance when you have renters on your premises.
5. Coverage Limits - Chances are you are unaware of the coverage limits on your insurance policy. Not only do you have to be concerned about co-insurance but you need to be aware of sub-limits on expensive items like equipment collectibles and jewelry to name a few.
Your best insurance is with an Insurance Broker, make sure you as your representative about these important coverage points.
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The Base Team
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