September 2020 

Time for an Insurance Review? 

Good-bye Summer. It’s back to school, back to the office for some of us. And perhaps, it’s time for an insurance review. Unfortunately, one thing not changing is COVID-19. The pandemic is staying with us. The virus has changed our lives in many ways. One area to examine is your insurance policies. You may be paying too much for some coverage (auto), need to protect office equipment at home (homeowners), and realizing the risks of mortality (life insurance). Perhaps you’re driving less, or not at all. Or you are now more aware of the risks to your health and want to make sure that your family is protected. It’s smart to make sure you and your family are adequately covered. 

Auto Insurance. Like many of us, you are probably driving a lot less now. With winter approaching, you may use your car even less, deciding not to venture out and buy online. If you haven’t already received a discount, call your insurance agent and ask about a discount. Perhaps, you can point to the reduced number of miles you drive now compared to the time before COVID-19. If you are no longer using your car for business, note that too. “Individuals should also check with their agents to see how their cars are being rated. If pre-COVID they were using their car(s) to commute to work and they now work primarily from home, they should update the policy to change the usage to pleasure/non-commuting, which typically carries a lower rate,” says Rose O’Brien, an insurance agent at GCG Financial. 

Other money-saving tips: Look into discounts for seniors. Raise your deductible for collision and comprehensive coverage. Decrease or drop unneeded coverage. If you have more than one car in your family and they’re just sitting in your garage, now may be a great time to sell one. Prices of used vehicles are skyrocketing due to heated demand and rock-bottom interest rates. 

And take a break from your car. Tuesday, September 22, is World Car-Free Day! Car Free Day is a worldwide event that encourages greener travel, meaning ways to get around other than driving alone by car.  

Homeowner’s Insurance. Do you have new office equipment in your home, particularly expensive technology? Do you run a business out of your home? Do you have clients visit you at your house?If you’re now working from home, these are all excellent reasons to review your homeowner’s insurance policy. Check with your employer regarding responsibility for the replacement of damaged or stolen office equipment. Standard insurance policy limits may not be enough to protect you from the liability claims from an injury on your property. No fence? Dog? Pool? These are all added worries. Fortunately, umbrella liability coverage is not expensive. You can buy the first $1 million of coverage for $150 – $300. Additional coverage is $75 – 100 per $ 1 million. And mind the gaps! Ensure there are no gaps in coverage where your homeowner’s liability coverage ends and your umbrella coverage begins. Bundling your home and auto insurance with the same company will not only save you money but will also ensure there are no gaps in coverage. 

Also, when was the last time you reviewed the replacement value of your home? It may be time to increase your coverage. Again, Rose O’Brien: “A review of your homeowner’s insurance on a regular basis is recommended. Often times, the value listed in a homeowner policy is not adequate to repair/rebuild after a covered loss. Because more individuals spend more time at home, upgrades and renovations/additions to homes are on the rise as they try to make their homes more comfortable. As a result, the replacement/rebuilding value increases. Insurance policies need to be adjusted for this increase to make sure a loss is fully covered.” 

Life Insurance.COVID-19 has reminded all of us of the value of life. There are no guarantees. If you have a family and others depend on your income, make sure that you have adequate life insurance to protect them if you pass away. Consider the amount of debt you carry and the cost of college for your children. Term life insurance will suffice for most, but there are reasons to consider permanent life insurance too. For example, you insist on leaving an inheritance or want to make sure you have life insurance coverage into old age without being subject to a medical exam for a new policy. Consulting a general insurance agent may be wise as carriers have made some changes in underwriting and imposed restrictions due to COVID-19. If it’s been a while since you last purchased your policy, now is a great time to review your situation and ensure you have adequate coverage. Insurance rates change all of the time. You may even be pleasantly surprised by a lower premium. 

Please let me know if you have any questions. 

Enjoy the beginning of Fall! 

Henry