An insurance broker may try to sell you on one big policy to replace the various smaller ones you carry on your home and its furnishings. Is it a bargain? Maybe yes, maybe no. It depends on the policy, the company behind it, your needs and your resources. You certainly should not go for it without examining what you're buying. We have seen one such package policy which increased the "deductible," restricted the terms of coverage, lowered the face amounts, and increased the premium - over the sum of the smaller policies it was calculated to replaces.
The broker touted it as advantageous. It certainly was - to the company and the salesman's commission check. Why, then had he recommended it to a regular client? Closer analysis showed that it did have certain other advantages, mainly in the coverage generalizations. Choice between it and the previous separate policies was really a toss-up. Such 'packaging', has two basic advantages, one for the company, one for you.
1) It saves the company a considerable amount of bookkeeping, thus money. You are one policyholder, not several.
2) It saves you bookkeeping, too. You need keep track of one policy and remember only what is in it. What's more, you become a rather more favored client, and that is no insignificant item, since the company's performance when called upon to back up its guarantees is at least as important as what the policy says. All companies in any business favor a client who buys more or from whom they make a better profit.
The rule here is the same as in all insurance questions. Read the policy. If there is some wording you don't understand, look it up in the dictionary and ask to have it explained so you understand it by your agent.
If you still can't understand it, go further by looking it up in an insurance reference book such as you will find in any good public library. Just ask the librarian.
If this effort finds you still confused then you have wandered into that never-never land of the true meaning of an insurance policy. Beware! If you go a step further you will have entered upon a lifelong quest. Get a good insurance broker in a conversational mood and ask him a few fundamental questions about the actual meaning of what it says in the policies he sells. Rare is the broker who can answer intelligently.
Florida Auto Insurance
