Not all insurance policies are created equal. While it’s tempting to buy the cheapest insurance policy you can find, you want to make sure you’re getting the most bang for your buck. Here are some things to consider when comparing policies:
Scheduled vs. Unscheduled: A scheduled policy is written for a specific list of items. Every time you get a new item, you need to tell the insurance company and have them add it to the policy. An unscheduled policy is not tied to specific items. It will cover you for a specific dollar amount of items. If you rent things often, or have a rotating inventory, an unscheduled policy is a lot less hassle.
Deductible: This is the amount that you’ll have to pay out of pocket in the event of a claim. You want to make sure that the deductible is low enough that you’ll be able to afford it when the time comes.
Negative/Data Loss: If your hard drive or film is damaged, this coverage will pay for you to take it to a recovery specialist.
Actual Cash Value vs. Replacement Cost: This is how the insurance company determines what they will pay you in the event of a claim. Replacement cost policies will pay what it costs for you to purchase a replacement item. Actual cash value policies will just pay you what something is worth, taking depreciation into account. Replacement cost policies will pay out more in a settlement.
I just found out that my homeowners policy excludes floods. What do I do now? Flood Insurance
At what point do I file an insurance claim? File your claim