10 Reasons to Review Your Coverage

By | September 14, 2018

Courtesy of iii.org

Coverage needs change as circumstances in our lives change; an annual insurance review will ensure you have the proper coverage for your needs and budget.


Our insurance needs change as circumstances in our lives change, which is why we recommend doing an annual insurance review. When you’re reviewing your insurance coverage, these ten questions can help you figure out whether you may need to talk to your insurance professional about making a change to your coverage.

1. Have you gotten married or divorced?

If you have gotten married, you may qualify for a discount on your auto insurance. Couples may bring two cars into the relationship and two different auto insurance companies, so take the opportunity to review your existing coverage and see which company offers the best combination of price and service.

If you are merging two households, you may need to update your homeowners insurance. And you may want to consider increasing your insurance for any new valuables received, such as wedding gifts, and for jewelry, such as wedding and engagement rings.

After getting married, it is important to review your life insurance needs. If one spouse is not working, he or she might be dependent on the working spouse’s income; if so, reviewing life and disability insurance coverage is prudent. The spouse who is not working outside the home should also consider having a separate life insurance policy because, in the event of premature death, the services he or she provides for the household would need to be replaced, and that could prove costly to the surviving spouse. Moreover, even if both spouses are working, couples often make financial commitments based on both incomes so the loss of one spouse’s income due to death or disability could be financially devastating without adequate insurance.

In the other hand, if you got divorced over the past year, you will probably no longer be sharing a car with your former spouse and have likely moved to a different residence. If this is the case, you should inform your insurer as you will need to set up separate auto and homeowners policies.

2. Have you had a baby?

If you have recently added a child to your family, whether by birth or adoption, it is important to review your life insurance and disability income protection.

If you are planning for your life insurance to match your survivors’ expenses after your death, the new child will no doubt add to those expenses, requiring more life insurance to keep your family secure. If you plan to save for your child’s college education, life insurance can assure completion of that plan. And if you keep your current life insurance policy, don’t forget to update the beneficiary designations to include the new child.

3. Did your teenager get a drivers license?

It is generally cheaper to add your teenagers to your auto insurance policy than for them to purchase their own. If they are going to be driving their own car, consider insuring it with your company so you can get a multi-car discount. And choose the car carefully—the type of car a young person drives can dramatically affect the price of insurance. You and your teens should choose a car that is easy to drive and would offer protection in the event of a crash.

Also, encourage your kids to get good grades and to take a driver training course. Most companies will give discounts for getting at least a “B” average in school and for taking recognized driving courses.

If your teenagers move at least 100 miles from home—for example, to go to college—you can get a discount for the time they are not around to drive the car (assuming they leave the car at home).

4. Have you switched jobs or experienced a significant change in your income?

If you had life and disability insurance through your former employer, and your new employer does not provide equivalent protection, you can replace the “lost” coverage with individual policies.

In the case of an income increase, you may have taken on additional financial commitments that your survivors will depend on. Make sure to review your life and disability insurance to ensure it is adequate to maintain those commitments.

If your income decreased, you may want to cut your life insurance premiums. Term life insurance is a good option, as the premium rates are very reasonable. And if you already have two or more policies you might be able to replace both with a single policy at a lower rate because you may reach a “milestone” amount of insurance. (For example, at many life insurance companies, $500,000 of insurance costs less than $450,000 because of the milestone discount.) But don’t drop existing life insurance until after you have a new policy in place.

5. Have you done extensive renovations on your home?

If you have made major improvements to your home, such as adding a new room, enclosing a porch or expanding a kitchen or bathroom, you risk being underinsured if you don’t report the changes to your insurance company. An increase in the value of the structure of the home may require an increase to your homeowners insurance coverage limits.

And don’t overlook new structures outside of your home. If you built a gazebo, a new shed for your tools or installed a pool or hot tub, you should speak to your insurance professional.

If, as part of a renovation, you purchase furniture, exercise equipment or electronics, you may need to increase the amount of insurance you have on your personal possessions. Keep receipts and add any new items to your home inventory.

6. Have you decided to buy a second home?

If you are searching for a vacation home or a second home you might retire to, make sure you research the availability and cost of homeowners insurance before you commit to the purchase.

The very factors that make a vacation home seem ideal, whether it is a waterfront property or a mountain retreat, can often introduce risks that make it costly and difficult to insure, such as proximity to the coast and the likelihood that it will be vacant for long periods of time.

In the event you have already bought a vacation home, don’t skimp on the insurance. The risk of theft or disaster is just as significant, if not more so, in a second home as in your primary residence.

If your new property is close to the water, be sure to ask about flood insurance. Damage to your home or belongings resulting from flood is not covered under standard homeowners insurance policies. Flood insurance is available from the National Flood Insurance Program (NFIP), as well as some private insurers, and is generally sold though private agents and brokers. You can ask your insurance professional whether your home is at risk for flood, or enter your address on the NFIP website to find out whether your home is in a flood zone. If you have a very valuable home, some homeowners insurers offer excess flood coverage over and above that provided by the NFIP policies.

7. Have you acquired any new valuables such as jewelry, electronic equipment, fine art, antiques?

A standard homeowners policy offers only limited coverage for highly valuable items. If you have made purchases or received gifts that exceed these limits, you should consider supplementing your policy with a floater or endorsement, a separate policy that provides additional insurance for your valuables and covers them for perils not included in your policy, such as accidental loss. Before purchasing a floater, the items covered must be professionally appraised. Keep receipts and add the new items to your home inventory.

8. Have you signed a lease on a house or apartment?

If you are renting a home, your landlord is responsible for insuring the structure of the building, but not for insuring your possessions—that is up to you. If you want to be covered against losses from theft and catastrophes such as fire, lightning and windstorm damage, renters insurance is a good investment. Like homeowners insurance, renters insurance includes liability, which covers your responsibility to other people injured at your home, or elsewhere, by you and pays legal defense costs if you are taken to court.

Regardless of whether you are a renter or an owner, you will have the following options when it comes to insuring your possessions:

  • Actual cash value pays to replace your home or possessions minus a deduction for depreciation.
  • Replacement cost pays the cost of rebuilding or repairing your home or replacing your possessions without a deduction for depreciation.

Think carefully about what your financial position would be in the aftermath of a disaster, and make sure you have the type of policy that is right for you.

9. Have you joined a carpool?

If you are a frequent carpool driver, whether it is to work, or ferrying kids to school and other activities, your liability insurance should reflect the increased risk of additional passengers in the automobile. Check with your insurance professional to make sure your coverage is adequate.

10. Have you retired?

If you commuted regularly to your job, in retirement your mileage has likely plummeted. If so, you should report it to your auto insurer as it could significantly lower the cost of your auto insurance premiums. Furthermore, drivers over the age of 50-55 may get a discount, depending on the insurance company.

93 thoughts on “10 Reasons to Review Your Coverage

  1. Ike Bull

    Usually I don’t read article on blogs, but I wish to say that this write-up very compelled me to try and do so! Your writing style has been surprised me. Thanks, quite great article.|

    Reply
  2. dig this

    I just want to mention I am just all new to blogs and certainly liked you’re page. Most likely I’m planning to bookmark your blog post . You actually come with exceptional articles. Cheers for sharing your blog.

    Reply
  3. wricefinancial

    Next time I read a blog, Hopefully it doesn’t disappoint me just as much as this one. I mean, I know it was my choice to read, nonetheless I truly believed you’d have something helpful to say. All I hear is a bunch of moaning about something that you could possibly fix if you were not too busy looking for attention.

    Reply
  4. oflewskii

    Spot on with this write-up, I really believe that this web site needs much more attention. I’ll probably be returning to read through more, thanks for the advice.

    Reply
  5. John Deere Technical Manuals

    Good ? I should certainly pronounce, impressed with your web site. I had no trouble navigating through all the tabs as well as related information ended up being truly simple to do to access. I recently found what I hoped for before you know it at all. Quite unusual. Is likely to appreciate it for those who add forums or anything, web site theme . a tones way for your client to communicate. Nice task..

    Reply
  6. DCSsystems

    After looking at a number of the blog articles on your web page, I seriously like your way of writing a blog. I book-marked it to my bookmark site list and will be checking back in the near future. Take a look at my website as well and let me know how you feel.

    Reply
  7. Dawn Leimbach

    Needed to create you the little bit of note to help say thank you yet again relating to the incredible thoughts you have shared on this website. It was so surprisingly open-handed with people like you to offer openly what exactly a few people could possibly have sold as an e book in order to make some profit on their own, chiefly given that you might well have tried it in case you wanted. Those strategies likewise worked to be the fantastic way to fully grasp other people have the same desire similar to my personal own to figure out very much more pertaining to this issue. I am sure there are millions of more pleasurable instances up front for individuals who see your blog post.

    Reply
  8. Joaquin Aviles

    I intended to compose you a bit of observation to help thank you very much yet again about the nice information you have discussed in this article. It’s so surprisingly generous of people like you in giving freely all a few people could possibly have marketed for an e-book to help with making some bucks for themselves, most importantly since you might have done it in the event you desired. These strategies as well worked like the easy way to be sure that other individuals have similar dream like my personal own to find out a good deal more with reference to this issue. I believe there are numerous more fun situations up front for many who scan your site.

    Reply
  9. EliteDefenseTech

    Howdy! This blog post could not be written much better! Looking at this post reminds me of my previous roommate! He constantly kept preaching about this. I am going to forward this article to him. Pretty sure he’ll have a very good read. Thank you for sharing!

    Reply
  10. Lonnie Murillo

    The very next time I read a blog, Hopefully it doesn’t disappoint me as much as this particular one. After all, I know it was my choice to read, however I really thought you’d have something useful to talk about. All I hear is a bunch of crying about something you could fix if you weren’t too busy seeking attention.

    Reply
  11. Techey Adda

    You’ve made some decent points there. I checked on the net for additional information about the issue and found most people will go along with your views on this site.

    Reply
  12. Luxenationz

    Hello there! I simply wish to offer you a huge thumbs up for your great information you have right here on this post. I will be returning to your blog for more soon.

    Reply
  13. Shayne Herrell

    Hello there! This post could not be written much better! Looking at this article reminds me of my previous roommate! He constantly kept talking about this. I most certainly will forward this information to him. Pretty sure he will have a good read. I appreciate you for sharing!

    Reply
  14. Royal CBD

    After exploring a few of the blog articles on your blog, I honestly appreciate your way of writing a blog. I bookmarked it to my bookmark website list and will be checking back in the near future. Please visit my website too and let me know how you feel.

    Reply
  15. Leta Nyhan

    The next time I read a blog, Hopefully it doesn’t disappoint me just as much as this one. I mean, Yes, it was my choice to read through, but I truly thought you would probably have something interesting to say. All I hear is a bunch of whining about something that you could possibly fix if you weren’t too busy looking for attention.

    Reply
  16. Eleonor Farfan

    Having read this I believed it was extremely enlightening. I appreciate you finding the time and energy to put this informative article together. I once again find myself spending way too much time both reading and posting comments. But so what, it was still worth it!

    Reply
  17. Tiana Splinter

    Good post. I learn something totally new and challenging on blogs I stumbleupon every day. It’s always helpful to read through content from other writers and practice something from their web sites.

    Reply
  18. Billy Shadazz

    You are so cool! I do not suppose I’ve truly read through something like this before. So nice to discover someone with original thoughts on this topic. Really.. many thanks for starting this up. This web site is something that’s needed on the web, someone with some originality.

    Reply
  19. i99Club

    Excellent blog you’ve got here.. It’s hard to find good quality writing like yours these days. I seriously appreciate individuals like you! Take care!!

    Reply
  20. The BP

    Everything is very open with a precise clarification of the issues. It was really informative. Your website is very useful. Thank you for sharing!

    Reply
  21. Denicopy

    [url=https://nolvadex10.com/]tamoxifen citrate nolvadex for sale[/url] [url=https://tretinoincream01.com/]tretinoin cream[/url]

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *