National Insurance Awareness Day is June 28! It’s a great reminder to review your insurance policies with your agent and close any gaps in your coverage.
Why are coverage reviews so important?
It’s easy to assume you’re covered if you have basic insurance. What you might not realize is your insurance needs change over time. For example, high inflation has increased the cost to rebuild after a disaster. A recent survey by the American Property Casualty Insurance Association found that less than one-third of insured homeowners have increased their insurance to account for rising building costs.
And rising costs aren’t limited to construction. The cost to repair a damaged vehicle increased an average of 4.1% per year from November 2013 to November 2023, reports CNBC. According to Kelley Blue Book, the average cost of a new vehicle is $47,000. Most state minimum insurance requirements aren’t enough to cover expenses if you cause a major car collision. If your car insurance hasn’t kept up with inflation, you may be out of luck when it’s time to file a claim. And if someone hits you and they don’t have enough insurance, you’ll need underinsured/uninsured motorist coverage to make up the difference.
Another risk to consider is the rising threat of natural disasters. Depending on where you live, you might be at significant risk for earthquakes, landslides, floods, mudflows or other catastrophes. None of these are covered under standard homeowners policies. You need separate insurance for these risks.
What to expect from a coverage review
When you meet with your insurance agent for a coverage review, they’ll:
- Ask questions about your situation to assess your risk exposure
- Shop around to get the best rates for your unique needs
- Examine and compare the fine print for you
- Explain the policy to you and make sure you understand what it covers
- Advise you on risk liability gaps created by policy exclusions
- Solve the liability gaps by presenting you with supplemental insurance options
- Explain safe driver, bundling and telematics discounts (Ask about the terms of the telematics program to ensure your data remains private and your rates won’t go up based on your driving or if you decide to leave.)
- Answer any questions you have
Call your agent for a free, no-obligation coverage review. You’ll have peace of mind knowing your insurance will respond when you need it.
Contact us with questions or request a policy review
This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem.
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Importance of Insurance Coverage Review