Insurance is sometimes referred to as a “necessary evil”. Something that many people buy because they must. But once they get their policy, more times than not, it goes in a file and they never think about it again… until there’s a loss. Here’s a quick checklist to help you go through and update insurance policies.
And while everyone agrees that protecting yourself from particular risks by buying insurance is a good idea, how certain are you that your policies are up to date and that you are carrying sufficient limits of protection. Insuring your home, car, business, and personal items as well as protecting yourself from certain negligent acts, is a good start but if it’s been years since you’ve reviewed your coverage, are you sure your policies are up to date? With the New Year quickly approaching, now is a perfect time to review your coverages.
A personal auto policy is probably the policy that is keep most up to date. Perhaps it’s the DMV’s connection with auto carriers or a higher frequency of changes on these policies (new cars, new drivers, etc.), but when is the last time you looked at your coverages and spoke to your agent to see if you understand the coverages you have and if the limits you carry are enough? Maybe you purchased your policy when you only had one vehicle and didn’t think stacked uninsured motorist coverage was the right plan for you. Or maybe you’re wondering what stacked uninsured motorist coverage is. Would it surprise you to know that this coverage can provide you broader coverage than non-stacked even with one vehicle in your household?
When you purchased your home, it might have cost $150,000 to rebuild but after 10 years or so it could cost $200,000. If your carrier does not adjust for inflation at renewal, you might be without the proper amount of coverage. If you’ve recently acquired high valuable items such as jewelry, watches, firearms, artwork, or musical instruments, does your policy have enough coverage to replace them if they were to become damaged or stolen? What if I told you that standard home policies have special limits for certain items due to theft, most under $2,000.
Businesses are not immune to the need for periodic review of their coverages and limits. If you have a workmen’s compensation policy, are you getting all the credits you should? Do you qualify for a dividend plan? Autos and drivers in certain businesses change frequently. Are your vehicle, driver and loss payee schedules correct? Have you added a service or product to your business? Did you set up a separate entity to operate that segment of your business?
There are so many changes that occur in our personal lives and business lives, it’s important to revisit and update insurance policies. While many of these do not adversely affect coverage, there are certainly plenty of situations that if not reported to your insurance carrier, could leave you very exposed.
If you would like to review your policy or have questions about your current coverages, give one of our licensed agents a call at 863-683-2228.