Ready to get your finances in order for 2021? A review of all your insurance policies is a great place to start. You may find savings you’ve overlooked, or discover your family is underinsured. The goal is to be covered like Goldilocks: not underinsured, not over insured, but just right.
To review insurance policy coverages, gather all your insurance documents and ask yourself these questions.
- Did you improve your home in 2020? If you’ve made major renovations or upgrades that have increased the value of your home, you may want to increase your coverage.
- Has anyone moved in or moved out of the home? Homeowners insurance covers possessions in the home in addition to the building itself. If adult children or aging parents have moved in with you this year, they’ve probably brought their possessions along, which may require additional coverage.
- Did you make your home safer? If you’ve installed a security system, upgraded heating, plumbing or electrical systems, replaced an aging roof or made your home safer in some other way, let your insurance agent know. You may qualify for a discount on your homeowners insurance.
- How many drivers are in your household? If you have a teen driver ready to get their license, let your insurance agent know so they can be added to your policy. Likewise, if an adult child moves out and gets their own policy, don’t forget to remove them from yours.
- Are you getting all the discounts you deserve? Multi-car discounts, safe driving discounts, discounts for special safety features – all of these are common savings you might be eligible for. One discount that is sometimes overlooked is a multiple policy discount, so if you have recently added home or life insurance policies with the same company as your auto insurance, make sure you’re getting that discount.
- How old are your vehicles? If you have an old car whose value has depreciated, you may decide to save money by dropping coverage for physical damage (collision and comprehensive coverage). Base your decision on risk factors (for example, how often the car is driven and who is driving it), the car’s value, and the advice of your insurance agent.
- Are your deductibles just right? If you have plenty of money in savings, you could possibly raise your deductibles and save money on your auto insurance premiums. If not, keep your deductibles low. Your insurance agent can advise you on how much you’d save (and if it’s worth it).
- Did you have any major milestones in 2020? Did you welcome a new addition to your family? Get married or divorced? Retire? Get a new job? Move to a new home? Any of these milestones might be an occasion to increase or reduce your life insurance coverage. For instance, if you’ve moved to a larger home, you probably have higher utility bills and a bigger mortgage – all of which your family would have to handle without you if you weren’t around.
Take notes as you review your insurance policy coverages, then call or meet with your local, independent agent to discuss possible changes and savings. Doing an annual review of your insurance with your agent’s help can give you greater peace of mind, knowing that the people and things you love are well protected.