Once upon a time, three little pigs each built a house. One chose straw, one chose sticks, and one chose bricks. They all purchased property insurance with the same coverage amount.
When the Big Bad Wolf came huffing and puffing, the real test was not just how strong their houses were.
It was whether their insurance was right for them. Here’s how it all unfolded…
The Importance of an Accurate Statement of Values (SOV)
An accurate SOV ensures that your insurance coverage aligns with the actual value of your assets. Underestimating values can lead to insufficient coverage, resulting in out-of-pocket expenses during a loss. Overestimating, on the other hand, may lead to unnecessarily high premiums without additional benefits. Regularly auditing and updating your SOV is crucial to maintaining appropriate coverage and managing insurance costs effectively.
Lessons from the Pigs
- Avoiding Underinsurance: The Stick House Pig’s experience highlights the risks of underinsurance, where inadequate coverage can lead to significant financial burdens.
- Avoiding Overinsurance: The Straw House Pig’s situation demonstrates that overinsurance results in higher premiums without additional payout benefits.
Complimentary Statement of Values (SOV) Analysis
We are here to help make sure you have an accurate SOV. Contact our team at info@centurisk.com to request a free SOV Analysis today!
Read this article for three ways you can benefit from an accurate statement of values.