Author: Erin Saunders, Account Executive - Personal Insurance/Private Client
Many personal insurance policies (Home, Auto, Umbrella, etc.) are set up for automatic renewals. Meaning these policies will often renew each year, or every six months, without having the opportunity to review coverages, costs, or to update personal information or report life events.
While we encourage reporting all major life events to your insurance advisor to update policies accordingly, at a minimum we recommend reviewing your policies annually to make sure you and your family continue to receive the most comprehensive and cost-effective coverage available. This is especially true today as we continue to be faced with macroeconomic challenges that could certainly have an impact on your personal insurance policies, such as:
Increased cost of building materials - How much would it cost to rebuild your house today as compared to when the policy was first written?
Increased interest rates - Would a loss impact your current mortgage or lease agreement?
Supply chain & continued difficulties in procuring new and used automobiles - Does auto policy account for increased cost of vehicles? Do you need to increase rental reimbursement coverage if you can’t get a replacement right away?
To help get you thinking, here’s a list of possible questions to consider as you approach your next renewal cycle:
Automobile Checklist
Are all vehicles you own insured; did you purchase a new car this year has it been added to your policy?
How are your cars valued on your policy? Actual cash value, Replacement Cost, Guaranteed Value? Know the difference
Does your policy include rental car coverage? With costs of current rental cars, you may need to increase this coverage for less out of pocket costs at the time of a claim.
Do you have any students away at college? Possible discounts
Do you have a teenager that is going to get their license in the next year?
Have you recently paid off your car loan?
If your car is towed, would you like coverage that would reimburse you for that? Did you know that towing reimbursement coverage on an automobile policy generally costs less than $10.00 per year?
Are you interested in adding or increasing your Accidental and Death Benefit Limits? Did you know that some of the most important coverages on an automobile policy are the least expensive, such as property damage coverage?
Do you wish to add income loss to your policy? Have you retired and income loss need to be removed?
Do you own a pickup or a van that contains customized equipment?
Do you own a mini bike, moped, motorized scooter or motorcycle?
Do you own any ATV's, boats, snowmobiles, jet skis or motorhomes?
Do you drive a company car?
Homeowners Checklist
Would it cost more to rebuild your home and replace its contents today than what it is insured for?
Have you made any changes to your home; additions, added garage, or a finished basement?
Do you own any of the following: Pool, trampoline, or recreational vehicles? Understand all exclusions
Does your home have a sump pump or drain to remove excess water?
Do you have a whole house generator?
Do you own any property that you rent or lease to others?
Do you own a second home such as a Coastal home?
Did you know flood is excluded on most homeowners policies? Understand the risks and available coverages
Are you running a business out of your home?
Have you acquired any collectables (jewelry, fine art, guns, antiques)? Understand coverage limitations
Have you added a new security or fire alarm system to your home?
Do you own pets or animals at your home? Certain dog breed exclusions
Have you recently updated your roof, heating, plumbing, or wiring?
Has your mortgage changed or been paid off?
Finally, after receiving the new declaration page you may discard any prior terms or policies. No need to hold on to them. And speaking of paper, many of our carriers have paperless options, one less thing to clutter up your counter!
As an insurance advisor, I can best assist my clients and recommend coverages if I know of changes that take place between renewals. Give your agent a call so they can make sure your policies are up to date and inform you of any new coverages being offered.
Erin Saunders
Account Executive - Personal Insurance
Email: Esaunders@capstonegrp.com
Phone: 215-542-8030