Once again, it’s a new year. January is a great time of year to reflect back on the previous year while we make plans and preparing for upcoming year.
I like to look back into my checkbook register from the previous year to see where I spent my money. This is a good indication of what I did and where my heart was. I’m always surprised by some meaningful things that I did during the course of the year that I forgot about. I’m also surprised by how much everything cost these days.
Because It’s easy to forget about some decisions that we’ve made and today’s cost of living I highly recommend that you review your insurance coverages with your agent at least once per year. It’s an exercise that can take as little as 15 minutes but may end up saving you thousands of dollars.
Top 10 things to review with your Insurance Agent
- Life Insurance Face Amount – You are your family’s most important asset, if you are gone your incomes goes with you. Make sure that you understand the type of life insurance that you have, the face amount and any expiration dates that they policy may have.
- Discounts – When reviewing your coverages with your agent be sure to ask if you have received every available discount .
- Best Company for you? – If you are working with an independent insurance agency (I highly recommend) be sure to ask if the company you are with is the best company for you. I think it’s a good idea to shop your insurance every couple of year to make sure you are getting the best coverages at the best possible price.
- Auto Insurance Bodily Injury Liability Coverage – Probably the biggest risk you take is when you drive. If you injure or kill someone while driving the medical expenses can be devastating. Be sure you understand how much coverage you have and purchase as much as you can afford.
- Personal Liability Coverage – As a part of your homeowners insurance policy, personal liability coverage is very inexpensive. Normally the minimum coverage amount is $100,000 but increasing this coverage to $500,000 may cost as little as $20 per year. If you have a large liability loss, a good attorney may cost $100,000 so increasing this amount may be important.
- Homeowners Dwelling Coverage – Be sure that your homeowner dwelling coverage is for Replacement Cost and Comprehensive Perils. Also, be sure that your dwelling amount is enough to completely rebuild your home. If you are unsure about the amount, ask your agent for a copy of the Evaluation Tool (MSB) used to arrive at your dwelling amount.
- Personal Property Coverage – It is difficult to arrive at a replacement value for all of your personal property. Review that number with your agent and purchase the most coverage that you can afford. Be sure that your personal property coverage includes Replacement Cost and Comprehensive Perils.
- Jewelry, Guns & Collectible – While your personal property coverage amount may be enough coverage for your jewelry, guns and collectibles, most homeowners insurance companies limit the amount that you can collect for these items. Be sure to discuss these items with your agent and make sure that you have enough coverage.
- Deductibles – Make sure you know and understand how your deductibles work. Your homeowner’s insurance policy may have separate deductibles for separate events. Your auto insurance policies may also have different deductible amount for comprehensive and collision claims.
- Other Structure Coverage Amount – If you have a barn, a large building, or any other structure that is not attached to your home, make sure those outbuildings have enough coverage incase of a tornado, fire or unexpected event.
Of course if you ever need help understanding your coverages we at Bragg Insurance Agency are always happy to help. Bragg Insurance, your friends in the insurance business.