This is the time of year that most people evaluate their lives, their finances their choices, their next move, and the time for new year’s resolutions.
Weight loss, love, repair of relationships; just a few things that make it to most lists. Something that doesn’t: insurance reviews, insurance adjustments, and new year insurance policies. This is a great time to evaluate insurance policies to make sure that they are in line with your life changes for the coming year.
Way too often, people forget to review their insurance policies. This should be done every year because most years, things change. Maybe there is a new car, a new baby, a new marriage; policies should be revisited each time a change like this takes place. Adequate coverage is something to keep an eye on.
Let’s look at auto insurance. A lot of people own 2 or more vehicles with no liens. Many choose the required state minimum amounts for coverage. They don’t insure their vehicle with rental reimbursement or towing and labor- because they have backup vehicles. If something happens to the first vehicle, there is a backup vehicle to operate.
But what if the backup vehicles were sold? Many remember to remove those vehicles from the insurance policy; however, they do not update and/or increase their coverages on the main vehicle.
If something like this happens/ took place, it would be crucial to review the coverages on the main vehicle. If there was an accident that took place in the main vehicle, state minimum coverage may not be adequate. Coverages that should be considered:
Towing and Labor
Rental Car Reimbursement
Uninsured/ Underinsured Motorist
Things change daily. There are factors that should be considered when it comes to homeowner’s insurance coverage and making sure that the coverage is adequate.
A lot of the time, consideration is given solely to the market value of the home. Not a lot of consideration is given to the replacement costs of the home: repairing, rebuilding and replacing the homes structure.
Other important considerations: operating a business out of the home, where one will live if the home is damaged and becomes inhabitable, and a guest being injured on the property. Coverages that should be considered:
Loss of Use
3rd Party Liability
Additional Living Expenses
Commercial/ Business Insurance
No one likes discussing this type of insurance because, it isn’t a happy topic; however, a necessary one. Life insurance policies should be looked at annually because- things change.
Life insurance shouldn’t be looked at as an age-associated coverage. People transition out of this life at all ages and, it’s important to protect loved ones. Picking up one’s financial burden can lead to that person’s financial crisis, who wants that for a loved one?
Some do have life insurance policies, but are they adequate? If they are not adequate it means that loved ones will have to carry the financial burden.
Life insurance provides coverage that helps with: final expenses, medical bills, paying off debt (credit cards, mortgages, other loans), and leaves a little cushion for loved ones to survive for a little while after one’s death.
The ending of one year is a great time to review how well equipped we are heading into the new year. Many new year’s resolutions tend to be financial; however, much of the time, insurance and finances are not associated with one another. Insurance is financial protection from life’s unpleasant obstacle courses. Insurance is something that should be reviewed annually with financial new year’s resolutions.
About Travis Etheridge
Travis, the co-owner of The Insurance Alliance, joined the insurance industry in 2011. He is married to his lovely wife Anica, and has an amazing son Henry. Travis is passionate about helping people, so the insurance industry is a natural fit. The thing he loves most about the industry is being there for his clients at their most trying times. He believes everyone is an individual and they deserve an individual plan best suited for their situation.