32 Million Households Need To Do An Update!
The Insurance Information Institute, the trade association for the insurance industry recently said that 32 million households in the U.S. own insurance policies that aren't right for them. In fact, 58% of homes were undervalued in their policies by an average of 21%. Imagine if your home was destroyed by a fire and coverage fell 20% short. We can not begin to tell you what is right, only what needs to be considered
But how do you know? The best time to evaluate your insurance exposure is when you, or your household goes through a live changing event such as a birth, major home renovations, a new home or even marriage. Estimates are that 50% of young households do not increase their life insurance after the birth of their first child.
Another benefit of doing an insurance update is you may uncover discounts that you did not know about. Some homeowner insurance rates go down if you combine auto coverage.
First, Teen Drivers: Depending on your state it may be cheaper to get your child their own auto policy if they will have their own car. Do not forget to ask for "Good Grades" prices. With better grades in school come discounts in the belief that good students make good drivers.
Next: if you are about to retire make sure you tell your Auto Policy provider. As you will be doing mostly local driving your rates should go down.
Next: If you do a lot of carpooling with co-workers or kids, make sure you have enough Excess Liability coverage
Next: if you are renting, the landlord usually covers the structure- but not contents.
Next: Any renovations or major improvements should increase the value of your home. Bumping up an extra $50 - $100K of coverage does not cost that much. You should also look at the increased value of your home with the run up in home prices. Even though you bought your home ten years ago for $200K, it may be worth $325K now.
Next: Get a new job? Does the new employer have life insurance coverage that you can upgrade for minimal cost?
Next: Did you get some new jewelry or an expensive car? If there is a theft or fire in the garage, do you have enough coverage? In fact, there are special policies for "expensive toys."