Spring cleaning is a tradition in many households, but don’t limit yourself to cleaning out the junk drawer or donating used clothes. Use this season of renewal by diving in ‘cleaning up’ your insurance policies.
While it’s not as simple as deciding whether to toss or keep old knick-knacks, the general sorting process remains the same. Consider what coverages you need to keep, what you might want to add, or what coverage you could remove or get lower premiums for. The majority of policyholders speak with their insurance companies too infrequently. Aside from talking to them during your renewal period, it’s best to contact them when you feel you don’t have enough of the coverage you need.
Take a look at 5 questions you need to ask your insurance agent when spring cleaning your insurance policies:
Do I need more coverage for my belongings?
Your home insurance has basic contents coverage that, more often than not, doesn’t cover high price items. If you recently purchased fine jewelry, consider getting a special personal property endorsement or jewelry floater. This type of coverage is much more comprehensive than typical home insurance because it also provides accidental disappearance coverage with no deductible. Take note that even if there are no high ticket items, it might be possible to raise your limits when you take into account how much all of your belongings are worth.
Do I need flood insurance?
Maryland and DC residents know all too well the inconveniences they have to face because of flooding. Home insurance doesn’t cover flood damage but it is becoming an increasingly common occurrence. It’s practical added coverage to have no matter where you live; especially when around a third of all flood claims come from those who aren’t in “high risk” flooding zones.
If something happened to my home, do I have enough coverage to rebuild it?
If you’ve recently made updates or additions to your home, your insurance policy needs to be updated. Big changes that may add value to your home have to be noted because if it becomes destroyed due to an accident, these additions may not be covered by your current policy
I have an old car. Do I need to update my auto insurance?
Are you driving an older car worth less than 10 times your premium? You might be paying for optional coverages that you don’t need. Consider speaking with your agent about dropping comprehensive and collision coverage so you can save money on your premium.
Do I need more liability insurance?
Your current home and auto insurance policies have liability coverage that can help cover the costs of lawsuits in the event of an accident. However, there are limits to the amount of coverage you can get. Adding more coverage is especially important if your assets are worth a large amount. Consider obtaining an umbrella insurance policy for your peace of mind.