Many of our clients ask us what insurance limits we recommend if money were no object.
Keep in mind that Cronin Insurance can customize your insurance policy to match the budget you can afford.
Here’s what we recommend you carry in each line of personal insurance, Auto, Home and Umbrella.
Auto Insurance
- Bodily Injury Liability: $250,000/500,000
- Property Damage Liability: $100,000
- Personal Injury Protection: $10,000 with no deductible
- Uninsured Motorist: $250,000/500,000 Stacked.
- Personal Liability Umbrella: at least $1,000,000 over Car and Home Insurance and endorsed for Uninsured Motorist.
As far as Comp and Collision goes, we recommend that you carry low deductibles if you can't afford large ones.
If you can't afford $1000 deductible before you can fix your car, make sure you choose a $250 or $500.
It will cost a little more, but you'll be glad at claim time.
Same goes for Rental and Towing coverage.
For about $25 every six months you can buy both.
This will give your peace of mind when you need a car after an accident,
or have to be towed when your car breaks down.
Home Insurance
Here are the limits that we would recommend for Home Insurance if no budget is involved:
- Dwelling: Insured at Replacement Cost
- Other Structures: 10% of your Dwelling
- Personal Property: 50% of your Dwelling and Insured at Replacement Cost
- Loss of Use: 20% of your Dwelling
- Personal Liability: As much as the Company will let you buy. The difference in price is negligible.
- Medical Payments: As much as the Company will let you buy. This coverage is also inexpensive to purchase.
- Law and Ordinance: 50% of your Dwelling
- Mold: As much as the Company will let you buy. The average mold claim exceeds the minimum limit of $10,000/$20,000.
- Sinkhole: Due to the small increase in price and the severity of this claim, it’s worth adding it to your policy.
- Flood: Insured by the NFIP and not covered by a standard Home Policy, we recommend you match your Dwelling and Personal Property Flood limits with those limits on your Home Insurance.
We understand that premiums have gotten so expensive, that compromises have to be made sometimes.
Here’s a few savings that shouldn’t hurt you too badly at claim time.
Other Structures – reduce to 2% if all you have is a fence.
Personal Property. – reduce to 25% of Dwelling – for many people that’s plenty.
Personal Property – requesting Actual Cash Value (ACV) will save hundreds, but the company will depreciate your items at claim time.
Law & Ordinance: reduce to 25% if you have a newer home or if you feel 25% is enough based on the dollar value of your home.
Remember a higher deductible saves you money, but will also mean a higher out of pocket cost at claim time.
Personal Liability Umbrella Insurance
An Umbrella Policy adds a layer of liability coverage over and above your home and car insurance policies.
Umbrellas are written in increments of $1,000,000.
In order to obtain an Umbrella Policy, you must meet certain underlying requirements.
These requirements may vary depending on your company.
The coverage limits above should meet most requirements.
To be sure, have us review your policy or check with your current Umbrella carrier to confirm you meet those requirements.
Ideally, you can afford to buy these limits of coverage to keep you financially secure.
But, keep in mind, Cronin Insurance can always customize coverage to find that sweet spot
Between affordability and decent protection.
Contact Cronin Insurance today and we will answer any questions you have on your policy.
Low rates, choice of companies and personal advice from local agents
Cronin Insurance is the Wise Choice.
