Make Sure Your Coverages are Sufficient for Your Changing Needs

With a new year upon us, there are a number of vents that can significantly change your life. When this happens, you need to be mindful of how those events affect your insurance needs to keep your loved ones and property sufficiently protected. It’s a good idea to review your coverages periodically. In today’s post, we will provide you an outline of things to consider to ensure you have the right coverage for your current situation.

Overall Policy Review (All Insurance Types)

• Life Changes: Marriage, divorce, new children, retirement, or changes in dependents can affect your coverage needs. Make sure you have the coverage you need without paying for coverage you don’t need.
• Coverage Limits: Make sure limits still align with your income, assets, and potential liabilities to maintain financial stability.
• Deductibles: Review your policy to confirm you’re comfortable with your out-of-pocket responsibility in a claim.
• Policy Gaps: Review your insurance policies to identify anything that might not be covered and see whether endorsements or riders are needed to update your coverage.
• Bundling Discounts: Discuss your coverage with your insurance agent to see if combining home, auto, and umbrella policies can save you some money.
• Premium Increases: If your premiums have increased, take the time to understand why rates changed and whether adjustments can reduce costs.

Life Insurance Considerations

• Adequate Death Benefit: Make sure you have sufficient coverage to replace income, pay debts, and support dependents in the event of the unthinkable.
• Term Length: Ensure that your policy duration is sufficient to meet any current or future financial obligations (mortgage, kids’ education, etc.).
• Beneficiaries: Review your policy to confirm that the names of the beneficiaries you have listed are current and appropriate for your needs.
• Employer-Provided Coverage: Review your coverage and consider supplemental policies if you feel the coverage is insufficient.

Homeowners Insurance Considerations

• Replacement Cost vs. Market Value: You should make sure that your policy is sufficient to cover rebuilding costs, not sale price.
• Dwelling Coverage Limits: Due to rising material and labor costs, you may require higher limits for the coverage you need.
• Personal Property Coverage: As you acquire valuables like jewelry, tools, and electronics, you should ensure to include them in your coverage to protect them if they are damaged.
• Special Endorsements: Depending on where you live, you need to consider adding riders for floods, sewer backups, earthquakes, or other potential hazards.
• Liability Protection: Review your policy and verify limits are sufficient to cover potential lawsuits or injuries on your property.
• Loss of Use Coverage: Make sure your policy offers sufficient coverage for temporary housing in the event of significant damage that makes your home unsafe for use.
• Home Updates: In the event that you have made any renovations, additions, or roof replacement, be sure to report those to your insurer and update your policy accordingly.

Auto Insurance Considerations

• Liability Limits: Higher limits can help ensure that your assets are protected in the event of a lawsuit.
• Collision & Comprehensive Coverage: You should update the coverage on your vehicle based on its age and value.
• Uninsured/Underinsured Motorist Coverage: This is crucial to ensure that you are covered in the event that you have a collision with someone who either has no coverage or coverage that is insufficient.
• Vehicle Usage Changes: If your vehicle usage changes due to starting remote work, commuting changes, or participating in a rideshare, you should update your coverage accordingly.
• Drivers Listed: Whether you have a teen who becomes a licensed driver or a grown child who moves out, you should update your drivers list to reflect these changes.
• Discount Eligibility: Check with your insurance provider to see if that offer safe driver, low mileage, multi-vehicle, or telematics programs.
• Rental and Roadside Coverage: Review your policy to make sure you have sufficient coverage in case you need a rental during repairs or roadside assistance coverage.

Umbrella Insurance (Often Overlooked)

Extra Liability Protection: This may be necessary to cover you when a claim exceeds your home and auto limits.

Asset Protection: This type of coverage is especially important for homeowners, business owners, or higher-income households.

If you need assistance reviewing or updating your insurance coverage, call the experts at Worgess Insurance today.