It’s the start of a new year – which makes it the perfect time to check off your annual insurance checkup. Just like your annual physical keeps track of your health and well-being, examining your insurance coverage every year can help ensure your financial well-being.
Your insurance checkup is easy to do. Just follow these simple steps to make sure your insurance coverage is still a good fit for your needs.
Know your coverage. Review your current auto, home, and life insurance policies. If you don’t know the details, contact your agent or your insurance company’s customer service department. You should be clear on how much you’re paying, what’s covered, and what your deductibles are for each policy.
Think about what’s changed. Major life events can affect your coverage and your needs.
- Did you get married or have a baby?
- Have you renovated, downsized, or upsized your home?
- Have you acquired a vacation or rental property?
- Do you have a new driver in your family?
- Have you joined a carpool and increased or decreased the number of miles you drive?
- Have you acquired valuable items like jewelry, artwork, collectible coins or electronic equipment?
If you answered “yes” to any of these questions, you may need to change your coverage. Ask your agent or insurance company’s customer service department for assistance – and be sure to ask about multi-policy, good student, and other discounts.
Review your home inventory. Now is also a good time to catalog anything new in your home – or to create a brand new catalog from scratch. Take room-by-room, top-to-bottom videos or photos of your home, and don’t forget to include closets, attics, basements, and garages. Keep a copy of the inventory online or in a secure place, like a personal safe or a safety deposit box.
Check your liability coverage. Make sure the liability coverage on your homeowner’s or renter’s policy is adequate, especially if you’ve enhanced your property. Upgrades like swimming pools, hot tubs, trampolines, and other additions might increase the possibility of injuries – and you want to make sure you’re covered. Consider a personal umbrella policy for additional liability coverage if it’s right for your needs.
Consider natural disasters. Most homeowners’ policies do not cover flood or earthquake damage. Talk to your agent about adding disaster coverage insurance if you’re at risk, and remember that floods can happen with little or no warning – even if you’re not in a flood zone or near a body of water.
Evaluate your auto coverage. If you have an aging vehicle, you may want to remove collision coverage. If you’ve changed jobs, retired, or plan to go on more (or fewer) long-distance road trips, you can adjust your policy to reflect the number of miles you intend to drive. If your child is going to college with a car that’s covered by your policy – or leaving a car at home – talk to your agent about your options. All of these changes could affect what you pay.
Call your agent. Call your AAA insurance agent or insurance company’s customer service department, or visit your local branch to discuss your insurance needs. They’ll be happy to work with you to find policies and deductibles that work for your budget and still meet your needs
To find out more about home or auto insurance, call your AAA agent or 1-866-222-7868 to see if you’re eligible for discounts and to discuss your coverage options.