The new year is a great time to take a look at your insurance coverage. Many of us do the initial research when we purchase insurance policies but forget to review them- causing the coverages to become inadequate over time. Below are some of the most common recommendations we make with regard to insurance.

Umbrella Insurance- Umbrella insurance is needed by almost everyone, yet we often find that it is not carried by clients when we do financial plans. Some umbrella policies require you to have your home and auto insurance through the same provider. Check with your provider to see if this is a requirement.

Commercial Auto- If you use your personal vehicle for business purposes, you need to have a commercial auto policy.

Named Storm and Wind/Hail Deductibles- For those who live in areas where severe weather is common, this is very important. The deductible for named storms can be as high as 10% of your home’s insured value. Check to make sure these deductibles are at a level with which you are comfortable. In the past, we have even recommended maintaining a larger emergency fund for clients who have high deductibles and/or a very valuable home.

Insured Value of Your Home- Make sure your home is insured for the correct value This is known as dwelling coverage or coverage A in your policy. It is especially important since home prices have risen quite dramatically in many markets over recent years. If you haven’t looked at your homeowner’s policy recently, it’s very possible you are under-insured.

Valuables- While your homeowners’ insurance will cover the contents of your home in the event of a covered loss, it may not reimburse you for items that are unusually valuable. Policies often limit the reimbursement amount by category (known as a sublimit)- a maximum of $2500 for jewelry, for example. If you would like additional coverage above and beyond these amounts, you must purchase insurance “riders.” The most commonly purchased riders would be for property such as jewelry, fine art, antiques, and the like. Furthermore, the total reimbursement amount for your personal property may be limited by your policy. Check your policy to make sure you’re covered in both these scenarios.

We are always available to you with any insurance questions you have. Please do not hesitate to contact us if you would like us to look over a policy, give a recommendation on the right level of coverage, or recommend the right solution for you. We are glad to help!