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Out With The Old & In With The New
It’s officially the first day of Spring! The days are getting longer and the weather is getting warmer, which means it’s finally time ditch your winter hibernation mentality and start some Spring cleaning! Break out your sturdiest pair of rubber gloves and start sorting through all your personal belongings. Toss out the old stuff and give your entire place a nice deep clean to help make room for the new. Aside from all the physical cleaning, you’ll be accomplishing, you’ll also want to do some basic life organizing too.
This is usually the time of year where people start asking themselves “Which insurance policies do I need to update?”. So while you’re in the groove of things, make sure to review all of your insurance policies to figure out which ones need updating. You’ll need to figure out which new policies you’ll need to apply for this year and which policies are now irrelevant and can be dropped. None of this is necessarily anyone’s definition of “fun”, but it’s very important to do at least once or twice a year and what better time is there than the present?
Which Insurance Policies Do I Need to Update?
As your life changes, so do your insurance needs. We’ll help you identify what you’ll need to add, remove or update in terms of insurance policies this year by helping you ask the right questions.
Do I Need to Update My Car Insurance?
If you’re driving an older car that’s worth less than 10 times the insurance premium, then the answer is yes. If you’re paying for optional coverages such as comprehensive and collision, then you may want to consider dropping them. This will help you save money on your premium. Reach out to your independent insurance agent if you have questions or need more information.
Do I Need to Update My Homeowner’s Insurance?
Along with cleaning, Spring is a popular time for home improvement. If you’ve had or are planning major repair work or new home additions this year, the answer is most likely yes. Before you start any major projects, you’ll need to speak with your independent insurance agent to make sure your home has proper coverage. We’ve all seen those cheesy slapstick comedies where home improvements go wildly wrong. Although most of those situations are pretty dramatized, they can still happen, so make sure you’re covered!
Also, if you’re in an area that’s prone to flooding, you’ll need to consider buying flood insurance. Most homeowner’s policies don’t include coverage for personal belongings damaged in a flood, so again, contact your insurance agent to talk about purchasing a policy.
Do I Need to Cover High-Value Items?
If you’ve bought or received an item this year that costs $1,000+, you’ll want to make sure it’s covered. Homeowner’s insurance policies will cover stolen or damaged items, but only to a certain degree. It’s important to review your policy to see how much is covered. To be on the safe side, you’ll need to make a list of all valuable items such as expensive jewelry, furniture, electronics, furs, etc. and get them appraised. The best way to get an accurate appraisal is to get a referral or use a trusted resource. Here’s a few we recommend:
- Appraisers Association of America
- International Society of Appraisers
- American Society of Appraisers
To ensure your valuables at their full dollar value, you may want to consider a personal property endorsement or floater. This coverage includes “accidental disappearance,” meaning you’ll be covered if you simply lose that item. Reach out to your insurance agent for more info.
Do I Need Travel Insurance?
If you’re planning an expensive vacation or one where you’ll be engaging in strenuous physical activities such as backpacking, rock climbing, mountain biking, white water rafting, etc. then you’ll want to consider travel insurance. It’s important to note that there are many different kinds of travel insurance and you don’t need it all. Often times, travel agencies bundle everything together for a “discounted price” and play off your fears in order to persuade you to pay for all types of coverage. To help you save some money, contact your insurance agent and they’ll give you an unbiased opinion of which travel coverage you’ll need based on the type of trip you’ll be taking.
If you plan on renting out your home through Airbnb or another service, you’ll need special coverage. Most homeowner’s insurance policies won’t cover damages inflicted by guests, so it’s important to talk about this with your insurance agent.
After you’ve used the information above to figure out which policies need to be added, dropped or updated, we still recommend reaching out to your independent insurance agent to make sure there’s nothing else that needs to be tweaked. They know your policies and coverage better than anyone else.