Reviewing your insurance coverage

When was the last time you sat down and really looked at your insurance policies - your car insurance, your home insurance and your personal liability insurance? If you are like most people, it's been years. More likely, you receive copies of your policy from your insurer and file them away somewhere and you never look at them again -- until or unless you need to file a claim. That's a big mistake. Instead, you should set aside some time to review all your policies. You just might find that there are opportunities to save some real money.

For example, did you know that discounts are offered to policyholders who have all their policies with one insurer? Take a look at your policies and see if you can consolidate with one carrier. Also, remember that you can generate substantial savings by changing your deductibles. Many people select a relatively low deductible for their car insurance --sometimes as little as $250. If you have a good driving history, you can increase that deductible to $1,000 and reduce your policy cost by 15 to 20 percent. Similarly, if you increase your homeowner's insurance deductible from $250 to $2,000 or slightly higher, you could see a premium decrease of 25 to 30 percent.

Besides the savings you could realize in premiums, you really do need to be reviewing your coverage to make sure it is still appropriate. For example, you may have taken out a personal excess liability (or umbrella) policy years and years ago and a $1 million coverage level may have seemed adequate at the time. However, maybe you have saved more and your net worth has increased and maybe now a $2 million policy is needed. These policies do not increase automatically so it is up to you to stay on top of the situation. Also, you should be aware that the addition of an extra $1 million of coverage on an umbrella is usually quite cheap. The first million in coverage is usually the most expensive.

Finally, if you have done any renovations to your home and have not updated your information with your insurer be sure to do so as soon as possible. It seems hard to believe but there have been several instances where people have substantially improved their homes (sometimes adding extra bedrooms and bathrooms) and forgot to inform their insurer. In those cases, if there is a loss, the new additions are not covered. The last thing you want to do is spend $50,000 or $100,000 on improvements and not be able to get reimbursed in the event of a loss

call me at 1-855-GET-SELECT for your free insurance review.

steve ludwig
president/ceo
select insurance group
saint peters, mo