Spring has sprung, and while most families are busy rounding up receipts for Tax Day or decluttering their pantries, Spring serves as a perfect reminder to renew and rejuvenate your approach to insurance. Here are some helpful tips as you dust off those insurance policies and spring clean your risk management program.
Homeowners Coverage
Is your home adequately valued? Due to rising costs of building materials and labor over the past several years, experts predict that over 66% of homes are underinsured, by anywhere from 20% to 60% or more. This implies that in the event of a loss, you could face significant financial risks leading to unexpected out-of-pocket expenses.
Your policy most likely includes Replacement Cost coverage for your dwelling. Replacement cost can be thought of as reconstruction costs; the cost to rebuild your home with materials of similar kind and quality. It will differ from market value, tax value, and the amount owed on your mortgage balance. If you have not assessed your home’s true replacement cost, now is the time.
If you have or are planning to undertake any renovations during Spring cleaning, such as replacing the roof or adding an alarm system, you may be eligible for additional discounts on your policy. Further, any previously made renovations should be discussed with your advisor to ensure adequate coverage.
Collections Coverage
Have you obtained any new jewelry items, valuables, or pieces of art? Standard homeowners policies have limitations for certain expensive items including jewelry, furs, silverware, and art. This means if a loss occurs, you may not be reimbursed for the full value of the lost or damaged item.
Consider creating a detailed inventory that includes everything from the jewelry in your dresser, to the silver in your dining room, to the artwork in your living room, and make sure to obtain updated appraisals. You not only gain a better sense of the worth of your belongings, but also ensure that you have the necessary information to make informed decisions about insurance coverage and protection in case of unexpected events. A collections or personal property floater can be evaluated to either schedule coverage for each piece or review blanket coverage availability.
Automobile Coverage
Washing that pollen off is not the only spring cleaning needed for your automobile. Coverage is not one-size-fits-all, and your situation may evolve considerably with time. Your insurance can be influenced by various factors like your driving history, location, and years of driving experience. Numerous insurance providers offer discounts for bundled policies, safe driving records, customer loyalty, and even good grades for teen students. If you were not eligible for a discount when you purchased coverage, you may be now, so it is always worth checking.
Review the limits of coverage and deductibles for each vehicle for adequacy. If you are driving an older car, a low Comprehensive and Collision deductible may no longer be justified. Conversely, if you are driving a newer car, consider a higher Comprehensive and Collision deductible to save premium dollars.
Watercraft Coverage
As the weather warms, boaters are looking to take their units out of storage and enjoy long carefree boating days. If you have not reviewed coverages since you first bought your boat a few years ago, your policy may not be adequate. For instance, any upgrades to electronics are not automatically included.
Make sure you have plenty of photos of your boat on hand, including the helm and any added equipment as a picture is worth a thousand words at claims time when needed. You should also review coverage for towing, salvage, and consequential damage included in the policy and be sure coverage is up to snuff.
Umbrella Coverage
If you frequently host gatherings at home, or have higher risk exposures, like swimming pools or play equipment in your yard, pets, or a boat, you may want to enhance your liability coverage and review umbrella policy limits. A Personal Umbrella policy provides additional layers of liability coverage over and above the liability provided by your homeowners, automobile, and watercraft policies.
Spring Into Action
Start Spring off on the right foot by contacting a member of our Private Client Services team to receive a complimentary Personal Risk Assessment. Let our team perform a thorough analysis of your personal risk profile to identify your asset and liability protection needs. This includes an analysis of your exposure to risk based on your lifestyle, as well as reviewing your existing insurance program to identify any potential gaps in coverage. Learn more about how we are dedicated to Safeguarding Your Success today.
