Just as a yearly physical is good for your health, taking time to examine your insurance coverage can help ensure your financial well-being. Although you can do this any time, the beginning of the year is a good time to take stock.
Follow these simple steps to make sure your insurance coverage is still a good fit for your needs:
Know your coverage. Review your current auto, home and life insurance coverages. Know what your deductibles for each policy are (the amount of your claim for which you may be responsible). Contact your agent or insurance customer service if you don’t know the details of your policies.
Think about what’s changed since your last checkup:
You may want to change your insurance coverage depending on the answers to these questions. Make sure to ask your agent or insurance customer service about multi-policy, good student and other discounts.
Review your home inventory. Now is also a good time to review your home inventory, or create one. Take videos or photos of your home – room-by-room, top to bottom – and don’t forget closets, attics, basements and garages. Keep a copy of the inventory online or in a secure place, like a safe deposit box. Consider using the easy Know Your Stuff app from the Insurance Information Institute.
Check your liability coverage. Make sure the liability coverage on your homeowners or renters policy is adequate, especially if you’ve enhanced your property with a swimming pool, hot tub or trampoline. This may also be the time to consider getting a personal umbrella policy for additional liability coverage.
Consider natural disasters. Homeowners policies do not cover flood or earthquake damage. Think about adding this insurance if you’re at risk, and remember that floods can happen with little or no warning, even if you’re not in a flood zone or near a body of water.
Evaluate your auto coverage. If you have an aging vehicle, you may want to remove collision coverage. If you’ve changed jobs, retired or plan to go on more (or fewer) long-distance road trips, you may want to adjust your policy to reflect the number of miles you intend to drive. If your child is going away to college with a car that’s covered by your policy – or leaving a car at home – be sure to inform your agent. All of these changes could affect what you pay.
Call your agent. Call your AAA insurance agent or insurance customer service, or visit your local branch to discuss your insurance needs. Work with them to determine what policies and what deductibles work for your budget.