Author: Elizabeth Orman
We don’t often think about insurance unless we are in an unfortunate situation. Still, it pays to keep your insurance agent updated on the events in your life so both they and you are ready for any challenges, both expected and unexpected. So do you need to call them weekly to chat? Not really, but here are five times when you should.
Life Changes
Call your agent when you experience any significant life changes, such as:
- Marital status: marriage or divorce
- Drivers moving in or out of the household (including kids going away for college)
- Death of a driver or policyholder.
Keeping this updated will ensure you have the right coverage for your household.
Lifestyle Changes
Are you working remotely? Are you dropping down to one car for the household? With reduced commuting time and miles, policyholders have less risk exposure, allowing some carriers to offer a discount for work from home or low mileage drivers. And removing a car from your policy will reduce your premium. If you don’t contact your insurance agent, they won’t know to ask for a discount or make adjustments to your policies.
Large Purchases
Are you buying an engagement or wedding ring? Or maybe you’re investing in fine art? Have you taken up an expensive hobby like photography, with lots of equipment? You should add these things to your homeowner’s or renter’s insurance policies. Keep in mind that items like jewelry or art gain value over time, so have these collectibles appraised every few years to ensure you have enough replacement cost coverage. For example, the price you paid for that wedding ring 25 years ago would probably not replace your ring today.
Renovations
During the pandemic, many of us took on the trend of renovating our homes, but we haven’t updated our homeowner’s policy to reflect the changes and increased value. The 1,200 square feet of basement you finished or the renovated kitchen with custom cabinets may not be able to be replaced with your current homeowner’s insurance policy. In addition, the gap between your home value and the cost to replace it expands with the rising construction costs; make sure to talk to your agent about the coverage you need.
Question About Coverage
The most crucial time to call is anytime you are unsure of your coverage. Knowing the benefits and limits, you have before you file a claim is the key to ensuring you have the coverage you and your family need.
Each term, you are given a declaration page showing your coverages. Reviewing it and ensuring all information on the policy is correct will eliminate many problems in the future. Ask questions, too – the insurance industry is rapidly changing, and your agent is there to help you navigate your coverages, find gaps in your insurance, save money, and protect your most precious and significant investments.
Contact us to learn more.