Often major life events like marriage, divorce, the birth of a child, children heading off to college, or even the death of a loved one can trigger a need for a change in your personal insurance coverage. Let us look at few of the life events that can affect your personal insurance.
Change in marital status creates a need to update your auto insurance. If you have a new person living in your household, your auto insurance will need to reflect that change.
Children heading off to college in another city also create a need to update your auto insurance, especially if they are taking a vehicle to college with them. In addition, your homeowner’s insurance should be updated if your student is taking any personal property to college such as a television, computer, or other items.
If you are newlyweds, you will need to update your homeowners or renter’s insurance to reflect new policyholder information as well as the replacement value of your personal property. If you have renter or homeowner’s insurance now, and you and your spouse or partner combine households, you are automatically covered by the existing policy. However, it is still important to call your agent.
When there are changes in marital status, it is essential to update your health, life, and disability coverage. There may be new names that need to be added or removed as beneficiaries.
When children start arriving in your home, it is essential to consider updating your life insurance to reflect the additional expenses necessary to manage the household in the event the primary breadwinner is gone.
Most of us are at home, hoping the COVID-19 pandemic passes as soon as possible. Adjusting to a life of social distancing can be a challenge for many reasons, simply because it might seem like there is not much to do while sitting at home. We came up with a few ideas to help you manage your time.
Set a schedule for your kids that might include times for reading, school work, exercise, and game time.
Schedule a family happy hour each evening before dinner. Use it as a time to talk about what is going on and share fun family traditions.
Teach your kids to cook.
Have a family movie night with popcorn.
Set up an exercise routine. Run up and down the stairs.
Organize that room you have meant to over the last year.
If the weather is pleasant, playing outside is a terrific option when you need to get out of the house.
Take time each day to share something you are thankful for or are hopeful for. It can be difficult to deal with all the news right now. Why not share something positive, like a video of people showing solidarity during this pandemic or a good news story that you found online?
Learn from our YouTube tutorials.
Take care of your physical health. Get a good amount of sleep and exercise, and use other ways to reduce anxiety, such as meditation, yoga, listening to music.
Get out all those old-fashioned board games. Watch TV together or share an electronic game or two. This would also be a great time to watch old family videos. Connecting with happier times is always good for our mental health.
Limit the news. For your own mental health and the mental health of your children, titrate the intake of news.
Connect with old friends or family members.
Start a garden. Garden centers are open, and you can get vegetables to plant.
Clean out your garage and get your stuff ready for a garage sale.
Camp in the back yard.
Make a family COVIS-19 bracelet.
Listen to a podcast, To say that podcasts are having a moment is a massive understatement. Whether it's to have a serious LOL or be inspired in your career, there's never been a better time to plug into some juicy conversations.
Learn a craft. Ever wanted to knit, crochet, or learn how to do woodworking? YouTube will keep you busy with plenty of videos to choose from.
Please check our website for any updates on changes regarding our operational procedures during this pandemic.
All of us at Planners Insurance Group encorage you to be safe, and be strong.
Homeowners insurance is designed to cover accidental loss or damage to your home and personal property. Homeowners insurance also covers your personal liability if someone is injured on your premises.
We recommend that every client actually read their homeowners policy to gain an understanding of the coverage and exclusions. Here are at least three things you need to understand about your homeowners insurance.
What the homeowners policy covers and does not cover. As stated above, a homeowner’s policy typically covers loss or damage to the home and personal property up to the policy limit. It also provides liability coverage if someone gets hurt on your property and decides to sue. Some common policy exclusions are flood, wear and tear, faulty workmanship, and even hurricanes in some locations. It is important that you read your policy to understand what is covered, excluded, and what your rights and obligations are.
Always have replacement cost coverage. Replacement cost coverage is available for the structure of your home. This allows you to repair the home to the state that it was before the damage took place. Actual cash value coverage is replacement cost less depreciation. The older your possessions are, the less you will recover from the homeowner’s insurance company.
Know what you can do to reduce premiums. These things will help keep your premiums lower: installing an alarm system or water intrusion system, having a fence around your pool, living close to a fire station, and updating your roof or electrical system.
Included in most homeowners, condo-owners, and renters insurance policies is coverage for the contents of your home. However, do you know how much coverage you would need if you had to replace everything in your house? Would you know what you had in each room of your home in the event of a claim? Would you be able to remember every item you have accumulated over the years if they were all gone? Recent survey results show 65 percent of homeowners have not made a list or inventory of their possessions.
Creating and updating an inventory of your personal possessions is one of the best ways to make the most of your homeowners or renters insurance, and it makes filing a claim easier and more efficient. If your home is damaged or totally lost due to a fire or other event, having a home inventory will help you recover all your personal property with the least amount of time and stress.
Creating a personal home inventory helps in calculating how much your personal property is worth. Knowing this ensures that you have an accurate value to insure. If you have too little coverage, you would not have enough funds to replace lost property, and if you have too much coverage, you are paying higher premiums than you need to pay.
How to Create a Home Inventory
Creating a home inventory is actually simple these days thanks to technology. Here are a few tips.
Create a digital record of every room. While you are videoing, describe each item and identify a replacement cost.
It may be useful to categorize clothing. For example, 10 pairs of men’s pants, 12 tee-shirts, 6 pairs of Nike shoes, etc.
Make sure you focus on high end items like jewelry, guns, computers and art work.
If you have expensive art or other items, it would be good to have it appraised.
Update the inventory from time to time.
Keep the inventory in a safe or at a secondary location. It can even be stored in the cloud.
You need enough insurance to cover the cost of rebuilding your home at current construction costs. Don't include the cost of the land. And don't base your rebuilding costs on the price you paid for your home. The cost of rebuilding could be more or less than the price you paid or could sell it for today.
Some banks require you to buy homeowners insurance to cover the amount of your mortgage. If the limit of your insurance policy is based on your mortgage, make sure it's enough to cover the cost of rebuilding. (If your mortgage is paid off, don't cancel your homeowners policy. Homeowners insurance protects your investment in your home.)
For a quick estimate of the amount of insurance you need, multiply the total square footage of your home by local building costs per square foot. To find out construction costs in your community, call your local real estate agent, builders association or insurance agent.
Factors that will determine the cost of rebuilding your home:
Local construction costs
The square footage of the structure
The type of exterior wall construction–frame, masonry (brick or stone) or veneer
The style of the house (ranch, colonial)
The number of bathrooms and other rooms
The type of roof and materials used
Other structures on the premises such as garages, sheds
Fireplaces, exterior trim and other special features like arched windows
Whether the house, or parts of it like the kitchen, was custom built
Improvement to your home–adding a second bathroom, enlarging the kitchen or other additions that have added value to your home
Standard homeowners policies provide coverage for disasters such as damage due to fire, lightning, hail, explosions and theft. They do not cover floods, earthquakes or damage caused by lack of routine maintenance.