| Comprehensive coverage pays
for your car if it is stolen, vandalized or damaged in some way other than in a collision.
Medical coverage provides for medical expenses to you and your passengers that are the result of
an accident. The way you use your car may make a difference in the amount of medical coverage
you need. For example, we might suggest more coverage for a parent who regularly takes a carload
of kids to soccer practice than for a driver who expects to drive mostly alone. Uninsured
motorist coverage pays when you're in an accident with someone who has no insurance.
Keep in mind that many states require certain
minimum levels of coverage. We'd be happy to talk with you about these and other factors.
How Much Insurance is
Enough - Home
The cost to rebuild your home is its replacement
value. This can be very different from the estimated market value or actual purchase price. In
most cases, it costs more to rebuild the home you own than to buy one from the stock of homes on
the market. It is important insight into why your Coverage A (Dwelling) limit is so important.
The first step in providing the right protection
is helping you determine the amount of insurance you need to protect your home.
Deciding How Much Insurance is Enough
We'll work with you to estimate the replacement cost for your home and to adjust your policy
limits from time to time as needed.
It is critical that you provide us with
accurate, updated information about your home and contents. Ask us about Home Replacement
Guarantee or Extended Dwelling Coverage, if available in your state.
Once a review of your home and possessions
indicates you are properly insured, it's a good idea to reexamine your coverages and limits from
time to time, especially whenever you make additions or improvements.
Be Sure You Have Enough Insurance
Here are some steps you can take to reduce the danger of being seriously underinsured:
Read your policy. Certain property,
such as jewelry, and certain perils, such as earthquake or flood, are better insured
separately. Knowing what is covered and for how much will help you insure properly. If there
is anything in your policy you don't understand, contact your agent and ask for an
explanation.
If you have questions or concerns about the
limits in your policy, ask us to show you how those amounts were calculated. This will also
give you an opportunity to make us aware of any overlooked information.
At each annual renewal of your policy, you
receive a new Policy Declarations page showing limits of coverage and optional
coverages. Review this information. If you do any significant remodeling or add a family room,
extra bedroom or bathroom, etc., tell us about these changes so your coverage limits can be
adjusted to cover the improvement.
Consider carefully whether your policy
provides all the protection you need. Does it provide coverage for extra costs resulting
from building code changes? Does it automatically increase coverage limits annually to keep
pace with inflation? Does it provide additional funds if the cost of rebuilding your home
exceeds the policy limits?
Find out whether your insurance company will
stand behind repairs they agree on and pay for after an insured loss. We are able to put
this guarantee in writing.
Does your policy include replacement cost
coverage for contents (clothing, furniture, appliances, and other personal property inside
your home)? If not, you can add it by endorsement. The cost is small, the protection valuable.
Without it, contents coverage is depreciated by the age and wear and tear of the items lost.
If you have an art collection, antique
furniture, jewelry, or other valuable possessions, talk to your agent about supplemental
coverages, such as fine arts or scheduled property endorsements, to adequately protect
your investment in these items. The cost is modest for the extra protection.
Consider whether you should have more
coverage for personal property (contents) than your policy provides. Personal property
coverage is usually 70% of the coverage limit for the structure. Your limit may be lower than
70%. Supplemental protection is available for a small additional premium.
Prepare an inventory of personal
property items, update it periodically, and keep it in a safe place outside your home, such as
a safe deposit box at your bank. It will save you hours of time trying to list everything you
lost if the time comes when you have to make a claim. It will also help ensure you don't
forget some items. Your agent can advise you on ways to simplify the job of preparing a
personal property inventory such as videotaping each room, with descriptive information on the
sound track.
Besides making sure you have enough protection
to cover possible damage to your own home and contents, you should also evaluate your exposure
to liability risks. These result from damage to the property of another, or injury to a
person, not a member of your household, for which you can be responsible. In recent years it's
become common for homeowners to be sued for injuries or damages to others, even when there is
no evidence of negligence by the homeowner. The reality today is if you have any appreciable
assets, you are exposed to the risk of being sued. Even if you ultimately prevail in court,
your legal fees and the months or years of worry and uncertainty can be a terrible burden on
you and your family.
If you have greater than average assets, you
should probably talk to us about a personal liability umbrella policy. $1 million of
coverage will usually cost less than $200 per year (costs vary from one locale to another) and
even higher limits are available.
How Much Insurance is
Enough - Life
Life insurance is a crucial step in planning for
your future. Not only can life insurance fulfill promises made to your family if you are no
longer around, there are several life insurance plans that provide benefits while you are
living.
Determining Your Need
The need for life insurance is dependent on your own personal and financial needs. We can assist
you in determining what type and amount of life insurance is appropriate for you. Generally, you
should consider life insurance if:
- You have a spouse
- You have dependent children
- You have an aging parent or a physically
challenged relative who depends on you for support
- Your retirement savings are not enough to
insure your spouse's future against a rising cost of living
- You have a sizable estate
- You own a business
There are benefits of life insurance other than
providing for your loved ones in case something happens to you:
- The cash value earned and borrowed from a
permanent life insurance policy can be used to help with large expenses, such as a college
education or down payment on a home.
- The growth of a cash-value policy is
tax-deferred - you do not pay taxes on the cash value accumulation until you withdraw funds
from the policy.
- Life insurance can be used to cover funeral
expenses and pay estate taxes - consult your tax advisor or financial agent for more
information.
Life Changes - So Should Your Policy
Your need for life insurance is dependent on your personal and financial needs. As your life
changes, your life insurance coverage may need to change as well to adapt to your current needs.
Some life changes that may require a policy "tune-up" include:
- You recently married or divorced
- You have a new child or grandchild
- Your health or your spouse's health has
deteriorated
- You are providing care or financial
assistance to a parent
- Your child or grandchild requires assistance
or long-term care
- You recently purchased a new home
- You are planning for a child or grandchild's
education
- You are concerned about retirement income
- You have refinanced your home mortgage in the
past six months
- You or your spouse recently received an
inheritance
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