Powered by WhirLocal Copyright © 2022 • Salem Business Journal

Five Questions to Ask When Reviewing Your Insurance Policy 

Written by Sarah Rutter on Sep. 28th, 2022
Featured Image photo for Five Questions to Ask When Reviewing Your Insurance Policy 

 

With the cost of everything rising, it’s important to check in with your insurance carrier to see if there are ways to maximize discounts and save money while ensuring adequate coverage for personal and/or business needs. A skilled agent will help you balance affordability with coverage that makes sense.   

Here are five questions to keep in mind when reviewing your insurance coverage: 

  1. Am I taking advantage of all available discounts?  

Insurance companies offer dozens of discounts—and you probably qualify for at least a few. Review your policy with your carrier to make sure you’re saving as much as possible. You can usually get discounts for:  

  • Bundling auto and home insurance  
  • Buying multiple insurance policies (also called multi-policy or multi-line discounts)  
  • Affiliations with groups like AAA or university alumni programs  
  • Working a certain job, like teacher or nurse  
  • Working from home or retiring  
  • Military service  
  • Being a senior citizen  
  • Your vehicle’s safety features, low mileage or safe driving  

Not only will bundling home and auto insurance generally saves money, but it also alleviates the burden of managing different policies with different carriers.  

  1. Is my policy information updated?  

Many people overpay for coverage because they haven’t updated their insurance provider about property or major life changes. It’s a good idea to review coverage annually with your insurance provider.  

Some changes that can impact the cost of your coverage include:  

  • Moving to a different neighborhood  
  • Selling a Vehicle 
  • Getting married or divorced  
  • Teens becoming adults – make sure they aren’t still listed as “teen drivers” on your policy  
  1. Is my home properly valued?  

Many people renovated their homes during COVID-19 lockdowns, and it can be easy to forget to relay that information to an insurance agent. Renovations change the value of your home, and your policy should reflect these changes.  

If you don’t update your carrier with home renovations, there could be a gap in your coverage – which would leave you without the proper resources to rebuild in the event of a loss. Also consider, “replacement value insurance” to account for inflation. It could cost you a lot more to rebuild your house when inflation is high.  

  1. Does my coverage include extreme weather?  

Our community has recently seen uncommon events, including devastating wildfires and an unprecedented ice storm. Many disasters are covered under a typical homeowners insurance policy; however, there are some exceptions. Check with your carrier to determine what specialty coverages you might need such as flood or earthquake insurance. Ask your carrier how much-enhanced coverage would cost.  

  1. Should I raise my deductible?  

No. The difference in cost for adjusting your deductible is minimal. On average, savings are about $37 every six months while increasing out-of-pocket expenses in the event of an accident. 

Overall, the goal of your insurance coverage is to have comprehensive protection in all areas of your life. Work with your agent to find the best protection at a reasonable price.  

 

Privacy PolicyTerms Of ServiceCookie Policy