February 08, 2007
Does The Insurance Shoe Pinch? Time To Change
What do you do if your shoes pinch and don’t seem to wear well? Change them of course. If we are so careful about our shoes, why do we find it so difficult to change our policies every time we realize that they don’t fit our requirements? According to recent statistics, at least 32 million households in the United States own insurance policies that aren't right for them.
Can you believe that in 2006, nearly 60 percent of homes were undervalued in their policies by an average of 21 percent. This makes you wonder if it is lack of proper knowledge that is making people take the wrong policies. So how do you actually tell if your insurance policy doesn't fit correctly? The best thing to do is every time you take a life changing decision or there is an unexpected change, check your insurance.
Got married? Check your insurance. Divorced? Where are the insurance papers? Purchased something new? …. While getting married and having kids are the no-brainer life events that may prompt insurance changes, there are several other instances when you should review your policies:
Renovated your home? If you’ve added a new room or expanded your kitchen, do ensure that your insurance covers all these new changes. You do want your hard work reflected - and covered - in your homeowners insurance, don’t you?
Any new purchases: Acquired valuables like art or jewelry? Before you begin admiring your new acquisitions, check to see if you can get them covered in your homeowners policy. If the policy provides only limited coverage for such expensive items, you might want to supplement your policy with a floater that provides additional insurance for valuables. Don’t forget to get the items professionally appraised so you know what they are worth.
Renting property: Don’t forget to take renters insurance. Your landowner is responsible only for insuring the structure of the building, not the possessions in it. If you want to safeguard your stuff, get insurance.
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