Spring Cleaning for Your Insurance

Source: Nerd Wallet, 3/24/2015

Spring Cleaning for Your Insurance

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Auto Insurance

Do you review your auto insurance policy at each renewal? If not, now is a great time to dig out your declarations page and review your coverage. Your declarations page will be a summary of your coverage and deductibles.

Some items to consider when reviewing:

• Check your liability limits to be sure they adequately will cover you in case you cause an accident. If you simply have renewed each year, you may be underinsured.

• Comprehensive and Collision coverage, these cover damage to your car. If you have comprehensive and collision are the limits adequate? If you did not buy them, should you add them? Or if you are driving an older vehicle, is it worth having comprehensive and collision coverage? If your vehicle were totaled, these coverages would pay out only for the value of the vehicle. Compare the actual cash value of your vehicle to the premium you pay.

• If you have Comprehensive and Collision coverage, check your deductibles. If you currently have a low deductible – like $500 – you could save money on your premium by switching to a higher amount.

• Double check that each vehicle has a current insurance card in it, you will want to have it available in case there is an accident

Homeowners Insurance

Similar to your auto policy, your coverage summary will be found on your declaration page. You’ll want to be sure to review this information annually as your home may be your biggest asset.

What to look for:

• Is your dwelling coverage updated each year to reflect local construction costs? Maybe you updated your kitchen, or had an addition done. Your coverage may not reflect the current replacement cost of your home if there was a catastrophic loss.

• Check your deductibles. In parts of the country, insurers have been switching from flat dollar deductibles, to a percentage based deductible. Contact your agent if you don’t believe yours is what you expect it to be.

• Consider any valuables you may have acquired. For example, expensive jewelry may not be fully covered under a standard homeowners policy, you may have to schedule those items. Check the details of your policy, or have your agent explain your coverage limits.

• Take a tour of your home and snap some pictures of its contents. This is crucial for maximizing a claim if there were to be a serious loss.

Take a few minutes to look over your current insurance policy. Is everything tidy and in order? Do you have the right coverage to protect your contents? Will you be guarded from financial loss if the unexpected occurs?

If you answered ‘no’…then put your policy on your Spring to-do list. Call your friendly MMI agent today at 989-791-5402.