An Independent Agent Explains:
How to Assess Whether Your Current Insurance Fits Your Current Life
This post is part of a series of insurance blogs on Safeco.com showcasing the expertise of independent insurance agents and aimed at helping you understand important insurance coverages and issues.
Everyone gets busy with daily life – family, jobs, kids, school, travel, and the list goes on. Before you know it, a year or more has slipped by without you giving your insurance coverage a second thought.
You pay your premiums and phone your carrier when an accident or other need arises. Otherwise, you assume all is well with your policies. But, what if it’s not?
There are a number of life changes and events that should prompt you to pick up your phone and call your insurance agent. You may need more homeowners coverage, for example, or you may need to remove a driver from your auto policy.
Even if you adjust your coverage as some of these changes occur, you’ll likely only catch others if you catch up with your insurance agent once a year – or more often. When you do, here are six questions you should be prepared to address:
- What Have I Added or Updated Around My Home?
Did you add an addition to make room for baby? Did you remodel after the youngest left the nest? How about adding a pool or finishing your basement? All of these examples and more increase the value of your home and how much it would cost to rebuild it. You should update your insurance coverage to reflect not only the new home value but also any new risks. - What Has Changed With My Vehicles or Drivers?
Are you driving a longer distance to work? Is the vehicle you previously used for commuting now sitting in your garage more often than not? It’s a good idea to reexamine your auto insurance coverage at least once a year to ensure you have the exact coverage you want – not too little, and not too much. - What Significant Purchases Have I Made?
Did you invest in a home automation system or a high-end leather couch? What about that piece of fine jewelry you picked up on the cruise ship? If the value of your personal belongings has increased significantly, you’ll want to check whether your homeowners or renters insurance still provides enough coverage. If not, you can likely purchase additional coverage for specific items or possibly groups of items. Otherwise, if a costly item is lost, damaged or stolen, you may find yourself needing to replace it with a lower-cost version. - What Is New With My Family?
Did someone leave for college? Are more people now driving your motorcycle? These are things to discuss with your independent insurance agent, too. - Are There Any Discounts for Which I Now Qualify?
Doing things such as adding a burglar alarm to your home or driving your car less may help you gain discounts you didn’t qualify for when you first purchased your policy. So, if you like to save money on your insurance as much as the rest of us, an in-depth annual discussion of recent changes in your life and around your home is a must. - Should I Consider Any Coverage Options?
More than likely, your carrier offers some coverage options that might just be a good fit for you now, even if they weren’t when you first purchased your policies. Examples can include roadside assistance for cars, motorcycles, scooters, RVs and other vehicles. You may want to add stereo coverage for the new system you put in your car or appliance coverage following a kitchen remodel. Your agent, of course, can help you explore these options and select what fits.
Some other questions you might consider before your annual insurance review include:
- Do I need any specialized disaster coverage, such as flood insurance or earthquake insurance, that I don’t already have?
- Is my home inventory current.
- Can I afford to raise my deductibles, and would it lower my insurance costs?
- Am I carrying high enough liability limits to protect myself?
- Is an umbrella policy right for me.
Just like filing your taxes, an insurance check-up is an annual item on your to-do list that can’t be skipped. After all, there’s nothing like the headache and heartache of thinking that you’re fully covered and then finding out you’re not when a claim occurs.
Remember, your insurance policies should reflect the life you have now – not the life you had when you first signed up with your carrier. So, keep your insurance policies up to date and keep your annual appointment with your insurance agent.