New Year Resolutions

With the coming of the New Year, we all tend to look for New Year’s Resolutions.  Things we want to accomplish in the New Year, or things we did not do in the old year.  One thing you should consider is your insurance coverage.  Most people buy a policy and assume they are covered for all their needs, and basically forget about it until their premium comes due.  However, needs change – you improve your home or you get additional goodies that need to be covered.  Also times change – the market price of your home may have gone down this year, but the price of replacement has probably gone up.  Maybe money is tighter this year, and you want to reduce the cost of your insurance.   Therefore, you need to make some New Year’s Resolutions regarding your insurance.

First, I would suggest you review your personal lines policy for all your valuables. Make sure you have included any Christmas gifts that need to be added – i.e. jewelry, computer equipment, valuable art, etc.

Have you finished any remodeling jobs on your home? Added a deck or swimming pool?  All these things could change the way you are covered.  Talk to me about the savings you might get if you replaced your furnace, air conditioner, electrical system, or roof.  One company I use gives a discount if you have replaced these things.

I have had several people call to reduce costs of their insurance, but they should be very cautious about dropping coverage to get a lower price.  One customer got a quote from one of the TV advertisers.  He called an 800 number for a quote.  They lowered the policy limits, so the price WAS lower.  However, the customer lost his multi-policy discount because that company does not sell homeowners insurance.  Across the board, insurance companies are currently losing money on homeowners insurance, so some 800 number companies do not sell this insurance.  Although that person got a lower rate on their auto insurance, their home owners insurance went up.  Know what you are getting and what you are not getting.  Call me to make sure you are covered correctly.

Another problem in 2009 will be replacement cost versus market value. Most people think of market value when considering what their home is worth.  Insurance companies use replacement cost when there is a claim.  Evaluate replacement cost of your home and/or business.  Compare this to your current policy to see if you are underinsured.  I would suspect market values have gone down, and replacement costs have gone up.   Having trouble coming up with the replacement cost, let me give you a free replacement cost analysis.

A big resolution for the New Year is to complete a home inventory and/or business inventory. In case of a major claim, insurance companies have you submit a list of all items that you own, when they were purchased, cost of the purchase and id numbers, if possible.  Most of you can tell me how many TV’s you own or what appliances are in your kitchen, but do you know how many pairs of jeans you own, what is in your bathroom cabinet, or the number of DVD’s you have?  To be sure all items will be replaced, it is important to have everything inventoried.   It should be stored not only in your home or business, but completely off the property in a lock box or accessible storage.

Last but not least, do you have enough life insurance to protect your family if something should happen to you?

The tendency right now is to shop for a lower rate and switch companies.  It’s been my experience that the worst thing you can do is switch insurance companies when we are heading into a market where prices are increasing and underwriting guidelines are changing.  If you want loyalty from your insurance company when a claim happens, now is the time to show loyalty to your insurance company.

Steve has 25+ years of experience as an insurance agent and he founded his company Priority Risk Management with the guiding principle of educating his clients as to the risks they face and the commitment to protect their most valuable assets. He has written numerous consumer reports advising his clients on the intricacies of their insurance policies and the best way to protect themselves. Additionally, he has authored, “Safe Teen Driver Guide: 16 Steps Every Parent Should Take to Prepare Their Teen to Drive!” To view these consumer reports and others visit his website: www.PriorityRisk.com. You can reach Steve by phone at 317-713-2959.

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