You Think You're Covered BUT Are You Really?

Of course, you have insurance. You know you do because you pay the premiums. You have homeowners, auto, life, and an umbrella policy, so, you’re covered, right?

I hate to ask, but are you covered for your life as it looks today?That’s a different question.

Insurance is one of those things we tend to put in place and then forget about. I mean, who wants to think about insurance. I understand but think about it, we buy a house and get homeowners insurance. We buy a car and get auto coverage. We add life insurance when we have children. These are all good things!

Then life keeps moving, sometimes pretty quickly, while our insurance policies stay exactly the same, and that can create vulnerabilities we don’t realize are there until we need the coverage.

Have Your Circumstances Changed?

Life doesn't stand still so think about what has happened in your life over the past few years. Maybe you are an empty nester now, and are renovating your house to fit your new life-style or maybe you've welcomed a new grandchild. Perhaps you've started a business and working out of your house. Whatever the changes may be, there is a possibility that your insurance needs have changed too.

Did You Cancel Coverage You Now Need?

Sometimes we make decisions that made perfect sense at the time. We cancel a policy or reduce coverage because we don’t think we need it anymore, or because we’re trying to cut expenses, but circumstances change.

Maybe you dropped a life insurance policy years ago because the kids were grown and the mortgage was almost paid off. Now you’re helping support grandchildren, caring for an aging family member or have other financial responsibilities you didn’t anticipate.

Perhaps cancer, a serious illness or another unexpected health situation has changed the financial picture for your family. Would the people who depend on you be financially protected if something happened to you?

The bottom-line is that coverage decisions shouldn’t necessarily be “set it and forget it” decisions.

Where Else Could You Be Vulnerable?

Here are two other areas worth thinking about.

Your liability coverage may no longer match your assets. As your income, savings, investments and property increase, so does the amount you potentially have to protect. An umbrella policy can provide additional liability protection beyond the limits of your home and auto policies. If you already have one, it’s still worth reviewing whether the amount remains appropriate.

Your possessions may be worth more than you realize. Jewelry, artwork, collectibles, electronics and other valuables can accumulate gradually. People don’t always stop to calculate what replacing those items would actually cost, and some categories of property may have limits under a standard homeowners policy.

The point isn’t to assume that something is wrong with your insurance. it’s to make sure that what was right for you three, five or ten years ago is still right for you now. A periodic insurance review gives you the opportunity to make adjustments based on the life you’re actually living today.

Have a conversation with your insurance agent and ask them to review your current coverage with fresh eyes, or give me a call. I’m always happy to do a timely review and help you determine whether your coverage still fits your life.