As an owner of a vehicle or a home, insurance is often looked at on the front end of the purchase and then just mindlessly renewed month after month or year after year as the bill comes in, or the policy renews. Most people don’t enjoy insurance shopping and digging into the details of insurance policies. Just knowing the basics of what is covered is enough for many people to sign on the dotted line and pay their monthly insurance payment. When it comes to reviewing your insurance policies, it is important to do so annually with someone you trust and here are some reasons why.
- Change in Value
For homes, in particular, they tend to change in value over time. As they increase in value, the cost to rebuild your home also increases. If your insurance policy only covers the value of your home when you purchased it, there could be a great discrepancy today. If your home were destroyed on your current homeowner insurance policy, would it cover the total cost to rebuild the home again or replace your prized possessions (jewelry, fur, antiques)? It would be an extra burden to have a large gap in the value of your home and the coverage amount when you are in need of building a new house.
- Renovations & Upgrades
Home renovations and upgrades tag onto the change of value of a home. Calculating the value of your home after you have made some upgrades or renovations will impact the property value. To make sure that all of your property is fully protected you will want to keep your coverage up to date with your current upgrades. This can even include things like updates to the kitchen and new furniture in the living room. Plus, when you do these things you can see if your home qualifies for other discounts on your homeowners’ insurance policy.
- Additional Members
When it comes to automobile insurance it is always a good idea to reevaluate your insurance needs each time you re-new your insurance term. Be it every six months or annually, it is best to stay up-to-date with the type of coverage you have. If you have a new teen driving in the family or one leaving your home, you may want to change your coverage. Talking with an insurance agent may be the most helpful way to help you make an informed decision about what type of auto insurance plan is best for your family.
- New Car
The most wonderful feeling about getting a new car is the smoothness of the ride. Knowing that everything should be in great working condition gives you peace of mind. Another aspect of comfort is knowing that you are completely covered if you happen to be in an accident. Just transferring the details from your former insurance plan to your new vehicle probably isn’t going to cut it. Seek out an auto policy that will give you confidence that you will be taken care of on the road in your new ride to include any type of gap insurance that you may need
Taking the time to annually review both your homeowners and auto insurance policies will help keep you and your assets completely covered. Adjusting your plans to fit your current way of life will help you maintain the quality of assets that you have worked so hard for. Talk with an insurance agent to help find the most suitable plans for your home and auto needs.
If you don’t have a current insurance agent that you trust who has you, your family and your assets as top priority, Paula Smith Insurance would be happy to be that valuable trusted resource for you. When was the last time you had the cell phone number of your 1-800# insurance company? Contact Paula Smith Insurance at (281) 488-8880 for a free, hassle-free, no-obligation full home or car insurance review.