Insurance policies aren’t all-encompassing
Most people assume that if they have homeowners insurance, auto insurance and life insurance, they are protected in case of life’s major emergencies, but that is typically not the case. That’s why it’s important to review your coverage regularly with your agent. Here are a few of the most common gaps in coverage that we find.
The homeowners policy you took out when you first purchased your home will likely not provide enough coverage even a couple years down the road because any enhancements or renovations you’ve made to your property may mean your home is undervalued. This may also be the case if you’ve added amenities like a pool or hot tub or welcomed a dog to your family. In addition, if you’ve purchased big-ticket items that aren’t detailed in your policy, you may find that their replacement is not covered in case of damage or theft. It’s a good idea to talk to your insurance agent annually to make sure your policy is keeping pace. If it’s not, you may want to increase coverage or add umbrella coverage to protect additional valuables.
Auto insurance varies widely, and there is no one-size-fits-all policy. Many people think they are covered if they meet the legally required state minimums for auto insurance, but in the event of a major accident, that could leave you holding the bag for most of the costs for damage and injuries. For example, in Massachusetts, you are required to have a minimum of $8,000 for personal injury protection. But with the high cost of medical treatment, a major accident could leave you with medical bills that are triple that and more. We can work with you to determine the most appropriate level of coverage for your vehicles based on a range of factors, and help you get the greatest number of discounts possible as well.
Far too many people don’t get life insurance, or don’t have enough. The key is to think about the people who depend on you for support, and how they would manage if you were suddenly not there. Even if you have life insurance through your job, it is likely only one to three times your annual salary. If you were to pass away, would that be enough for your family to continue to pay the mortgage, childcare, college tuition or other expenses? We recommend reviewing your life insurance coverage every time you have a major life change, from the purchase of a new home to the birth of a child.
There are lots of places where insurance policies may not provide you with the coverage you assume. That’s why it’s important to work with an agent you trust who takes the time to learn about your individual situation and can recommend the best coverage possible, at a cost you can afford. If it’s been over a year since we’ve reviewed your coverage with you, contact us for an appointment soon.