What to Ask Your Insurance Agent During a Policy Review

The New Year is a time when many people make pledges for new fitness goals or to be more organized. It’s also a good time to resolve to better protect you, your family and your belongings with an annual insurance review.

Here are some things to consider when reviewing your life, home, and car insurance policies. 

HOMEOWNERS INSURANCE

• Does my current policy provide enough coverage to rebuild my home today? The price you paid for your home is not necessarily the cost to rebuild it. For example, when you first bought your home let’s say it was insured for $300,000 to rebuild it in the event of a loss. After a decade or so your property value goes up as does the cost of construction, your home now costs $400,000 dollars to rebuild. That means there could be a gap of $100,000 which could leave you without the financial resources to rebuild if you have not updated your policy coverage.
• How does a newly finished basement affect my policy? Because they are most often below the ground, basements can flood. Some situations will be covered by home insurance, while others require a special type of flood coverage. Talk to your agent about what types of coverage you can add to protect your newly renovated basement.
• Do I have the proper coverage/endorsements if a sewer backup or sump pump overflow happens? Many people assume sewage backup or sump pump overflow is covered by their homeowners or business insurance policies. However, it is NOT typically covered in a standard homeowners policy. Read more about this endorsement here. Sewer back-up & sump pump overflow endorsement
• Does my homeowners policy cover stolen or damaged family heirlooms, antiques, musical instruments, wedding rings or other valuables? Your existing policy should provide standard coverage for your home and belongings, but there is usually a limit. That is where scheduled personal property comes in. It is an optional add-on to your homeowners insurance policy that may increase the coverage limits on specific, high-value items.

AUTO INSURANCE

• Should I have my home and auto insurance with the same insurance company? Most of the insurance carriers we work with offer home and auto insurance bundles, which boast a number of perks, discounts, and unique coverage opportunities. Bundling your coverage is also convenient, as all of your protection can be in one place — and in some cases with one monthly bill.
• Am I covered if I’m in an accident and get injured by an underinsured or uninsured motorist, or if I cause an accident and injure someone or worse? This all depends on the limits you have on your policy and coverage you have selected. Sadly, bad accidents happen. Some can cost people hundreds of thousands or millions of dollars. Even if you have the highest limits your policy might not cover all the damages, medical costs or legal fees. This is where an umbrella policy can be a financial lifesaver. Learn about higher auto limits and umbrella policies.

LIFE INSURANCE

Life changes frequently. As a result, your life insurance coverage may need to change as well. Consider the following life events as you review your life insurance coverage in the new year.

• Life Changes: Marriage, divorce, a new baby, kids in college, retirement or death are some events that may create a need to make adjustments to your life insurance policy.
• Income Changes: Has your family income increased substantially? You should consider adjusting your policy so your family can maintain their current standard of living in the event of the death of an income earner. If your family experienced a significant decrease in income, canceling your life insurance policy is not the answer. Talk to an insurance agent to explore more affordable options. Bearingstar is happy to provide you with a complimentary review of any current life.Click here for more tips and insights on life insurance

An annual insurance review is highly recommended. Your local agent will know the details of coverage that will best fit your needs after a detailed conversation. Our agents take a collaborative approach in order to provide customized insurance solutions and guidance to safeguard what matters most to you. Contact your local Bearingstar office or agent for a policy review today.