Make It Your New Year’s Resolution to Update Your Insurance Policies
The New Year is on the horizon and now is a great time to take stock of insurance policies and determine what changes should be made in your coverage.
Homeowner’s insurance offers an amazing amount of coverage for a great value. Policyholders need to look at all the exclusions and limitations and decide which risks to cover. Some insurance companies may offer all kinds of benefits and discounts so make a decree to check with an insurance agent to find the best bang for your buck.
Consumers should also be careful not to overlook their belongings as a way to avoid paying more for insurance. Chances are homeowners have added to their belongings over the course of the past year. Perhaps a new flat screen TV was purchased for the living room? Most consumers automatically accept the amount of contents coverage named in their policy but now is the time to review any personal belongings and choose the right type of coverage for the actual value of your property.
“I recommend homeowners take an inventory of their property with pictures or video, especially for expensive items such as televisions, jewelry, electronics or even the hard and soft scape of the residence. By keeping a record, homeowners will be able to make a claim in the event of a catastrophe,” says Frank N. Darras, America’s top disability insurance lawyer.
Every consumer should read their policies carefully to make sure there are no gaps in coverage and check the dollar limits for personal property in the case of homeowner’s insurance. Dollar limits and excluded causes of loss will be listed in any policy. It is in the policyholder’s best interest to raise the dollar limit or buy special perils coverage if it is needed.
A 2008 survey conducted by Marshall & Swift found that 64 percent of homes were undervalued for insurance purposes (Marshall & Swift: California Wildfires Highlight Need to Protect Homes Against Underinsurance, August 17, 2009). Homeowner’s insurance is based on the cost of rebuilding a home due to damage rather than the actual market value of the property. Many consumers will be fooled into complacency and won’t check their policy to update their insurance. When it comes to deciding what coverage to purchase along with how much the premiums should be, insurance agents can be a best friend.
“Not only do homeowner’s insurance policies bear reviewing annually, so do other policies, including disability insurance,” says Darras. “Based on current needs, policyholders need to decide if their coverage should be increased. Have you moved into a bigger house? Have a new child?”
Or perhaps your cost of living has gone up? Consider purchasing or updating disability insurance before any potential health concerns lead to a chronic disabling injury or sickness.