It can be tricky to choose the proper amounts and types of insurance coverage since you must first recognize bad things can happen. This is difficult for some people, so to help you make smart decisions, Charles Adams Insurance of Ashland, KY, describes three common home and auto insurance mistakes and how to avoid them.

3 Important Home & Auto Insurance Coverage Mistakes to Avoid

Mistake #1: Insuring Your Home for Its Market Value

Instead of insuring your home for its market value, which can fluctuate dramatically, ask a few builders for quotes on the cost to rebuild the home. This keeps you from overpaying for insurance when the market skyrockets and prevents you from under-insuring the home when prices drop.

Mistake #2: Failing to Purchase Renters’ Insurance

Even if you don't own a home, you probably have invested a lot of money in personal property such as furniture, clothing, electronics, jewelry, and even artwork. What would you do if they were destroyed or stolen? You may believe your landlord's property insurance policy covers your belongings in case of a burglary, fire, or storm, but this isn’t true. Property coverage reimburses the landlord for their losses; you are responsible for insuring your items. Create an inventory of your personal property, and estimate each item's value. Then, contact a reputable agent about renters’ insurance coverage.

Mistake #3: Buying the Minimum Car Liability Insurance

Kentucky law requires motorists to buy a minimum of $25,000 bodily injury liability insurance per person per accident, to a maximum of $50,000 for all injured persons. It also requires $10,000 property damage liability per accident. If you have considerable assets (a home, retirement savings, investments), it is wise to protect them by raising your liability limits to cover you in case you are sued for catastrophic damages after an accident where you’re at fault.

This independent agency offers invaluable guidance when choosing coverage to help you protect what matters most. Charles Adams Insurance of Ashland, KY, has represented the finest insurance companies in the country, including Auto-Owners, Safeco, Ohio Casualty, EMC, Liberty Mutual, and Progressive. Visit them online for contact details, or call (606) 325-9709 to discuss your needs with a friendly, knowledgeable professional.