The True Cost of Cutting Coverage: What You Need to Know

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The True Cost of Cutting Coverage: What You Need to Know

Thinking about trying to save on premiums by reducing or eliminating coverage? When unfortunate events or unexpected weather disasters happen, you might regret sacrificing your insurance protection! Lower coverage often means more out of pocket expenses in the event of a claim. Staples and Associates shares the true cost of cutting coverage and what you need to know to stay protected.

The Hidden Risks of Reducing Your Insurance Coverage

The Staples and Associates team is equipped to help you find insurance savings, balance premium costs, and discuss coverage needs with our signature customer service quality. When a crisis hits, don’t you want to be able to pick up the phone and call your agent, rather than an 800 number? 

Increased Out-of-Pocket Costs
Lower coverage often means higher deductibles, which can leave you with substantial expenses in the event of a claim. If you reduce coverage, you might find yourself responsible for costs that would have been covered under a more comprehensive policy.

Liability Exposure
Inadequate liability coverage can expose you to significant financial risk if you’re sued or held liable for damages. And, the cost of legal defense can be substantial. With lower coverage limits, it may not be sufficient to cover legal expenses.

Property Damage and Loss
If your property is underinsured, you may not receive enough compensation to fully replace or repair it after a loss. Many policies only cover the actual cash value (ACV), which can leave you short if you’ve reduced your coverage limits.

Don’t let short-term savings lead to long-term losses when it matters most. Our team can create a policy plan that ensures smart, adequate coverage at a reasonable rate.  

Contact our agents today to start the conversation and get a free, customized quote.

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