All too often, the safety net that protects your assets in the event of injury, illness, damage or death gets short shrift. That can be costly, and it’s worth noting that insurance coverage needs to change with every lift event.
Without an annual review, it’s tough to determine whether you’re paying too much, paying for coverage you no longer need or are under insured – which exposes your family to risk.
It’s important to review each piece. Even if you haven’t made any significant developments or improvements to your home, it is possible that other changes have occurred that your insurance agent should know about. Was there a flood, landslide, or damaging hail storm? Changes in the real estate market may affect the current policy or changes in lifestyle, living situation, or income are all factors to consider when reviewing your homeowners policy.
One area in which homeowners might come up short is liability protection. An umbrella policy extends further protection from lawsuits resulting from an injury in your home or on your property (that includes your vacation home, car, and boat). A $1 million umbrella policy may seem like a lot, especially if you have less than $1 million in assets, but in the rare event that you are sued, you could be forced to pay a legal judgement from your current assets and future earnings. The policy can also pay for defense costs, which can quickly add up even if you win your case.
Auto insurance policies need to be reviewed to ensure that you have adequate coverage and protection for all drivers. If you have a new driver on your policy, it might be a good time to increase coverage. In addition to adding or changing the vehicles on your policy, it is important to review your driving habits. Are you driving more or less this year compared to last year? Will you have any upcoming road trips that may require additional coverage? If the value of your car has dipped below $3,500 it might a god time to ditch the collision coverage and go for liability only. Taking the time to review these aspects each year will save you money and give you piece of mind.
Reviewing your lift insurance policy should involve a look back at the year and the responsibilities and roles you hold. If there have been any additions to your family whether that be a new baby or elderly parents moving in, it’s important to increase your life insurance to accommodate the care of all individuals who depend on you.
Any changes in health, activity or stress levels might also be reasons to review and perhaps change your life insurance policy. It is generally not a good idea to reduce your life insurance policy. Even in situations where there is job loss, divorce, or changes in family circumstances, there will be individuals who will be at a financial loss if you are no longer there, so it is important to provide for those unforeseen circumstances by reviewing and renewing your life insurance each year.
Give our office a call to discuss your policy and see if the coverage you have is the coverage you need!