Discussing Life Changes
Are you covered? Are you sure?
Buying an insurance policy can be like going to the dentist. You think about it a lot as the appointment draws near, you might wonder how much the work will cost and, once you’re done, it all quickly fades from your mind so you can start worrying about something else.
Like the dentist, you may not give your homeowners policy a second thought after you have it…until something happens.
Sifting through the rubble of disaster is not the time to wonder whether you have proper protection for your home and your belongings. The problem is, it can be difficult to get someone to talk about adjusting a policy, or even reviewing it, if they don’t feel an immediate urge to do so. They may feel they did a good enough job when they bought the policy, or they may feel that a review will only lead to bigger premiums.
Either way, your world can change before you know it. If you don’t keep your policies current, you might find yourself in trouble if catastrophe strikes.
To start the conversation, think about:
- How different things are now. Again, things change. You buy things, replace things, get gifts, develop hobbies and get rid of things, and your homeowners policy needs to accommodate all of it. Talk about how much change you’ve experienced since you paid your first premium.
- How well you know your policy. Let’s say you’ve remodeled your kitchen and fitted it with the very latest appliances and gadgets. In the case of a total loss, are those appliances and gadgets fully or partially covered? What’s your deductible? What does the policy exclude? The better you know your policy, the better you’ll know what to change to suit your needs.
- Premiums. It’s possible that a review will result in a higher premium, but you might have more to protect now too. On the other hand, let’s say you sold all your camera equipment and you no longer need the extra insurance for that. Your premiums may go down. Consider too, the cost of replacing the noninsured items over paying the premiums to cover those items today. Which is higher?
- Making an insurance review a habit. If you plan on a regular review, like a regular trip to the dentist, you’re likely to reduce any major surprises, or gaps in coverage, should tragedy strike. You’ll be better informed, and in the end, you might save some money.
Reviewing your homeowners policy with your agent on a regular basis will help make sure that you, your family, your home and your possessions are all properly covered. When facing adversity, there’s value in peace of mind.
This article is provided for general, informational purposes only and is not intended as advice specific to your situation.
