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What 6 Questions Should You Answer To Help You Decide What Insurance Coverage You Need?

Posted Scott B. Cooper on Apr 20, 2015 in Car Accidents

According to the Insurance Information Institute(I.I.I.). , this is a good a time of year to review your insurance coverages.  In addition to cleaning out the closets and organizing homes after the long cold Winter, it is also an excellent time of year to make sure you have the Pennsylvania Auto, Homeowners, and other insurance coverages to protect you and your loved ones after a Pennsylvania injury or damage accident.

The I.I.I. suggests asking yourself these 6 questions to assess your insurance needs.

1. Is my home covered for its full rebuilding cost?

Review your policy to make sure that you have enough insurance to rebuild your home. If you have made major improvements to your home, such as adding a new room, enclosing a porch or expanding a kitchen or bathroom, you risk being underinsured if you don’t adjust your homeowners insurance coverage limits.

And if you don’t yet have a separate flood insurance policy, now would be a great time to check whether your home is in a flood risk zone at FloodSmart.gov.

2. Do I have enough coverage for expensive items?

Have you bought or received as a gift any valuable jewelry since you purchased/renewed your policy? And, when was the last time you had the items you owned appraised? Standard homeowners insurance has dollar limits for the theft of certain types of expensive items like jewelry, furs and silverware. This means that the insurer will only pay the amount specified in the policy—generally $1,000 to $2,000. To insure these items to their full dollar value, consider a special personal property endorsement or floater. This coverage includes “accidental disappearance,” meaning coverage if you simply lose that item—and there is no deductible.

But remember that items can go up or down in value.  Floaters and endorsements are priced on the appraised value of an item or collection so have periodic reappraisals done to make sure you are purchasing only the amount of coverage you actually need.

The best way to keep track of your belongings and make sure they are adequately insured is to create a home inventory—find out how here.

3. Do I still need comprehensive/collision on my car?

If you’re driving an older car that is worth less than $1,000—or less than 10 times the insurance premium—the optional coverages may no longer be cost effective. Consider saving money on your premium by dropping either comprehensive or collision.

4. Do I have enough liability insurance to fully protect my assets?

Standard homeowners and auto policies liability coverage, paying for judgments against you and your legal fees, up to a limit set in the policy. However, in our litigious society, you may want to have additional protection—that’s what an umbrella liability policy provides. An umbrella policy kicks in when you reach the limit on the underlying liability coverage in a homeowners, renters, condo or auto policy. If your assets have increased of late, you’ll have more to lose and may want to consider this extra layer of protection.

5. What kind of vacation will I be taking this summer?

If you are taking an expensive, pre-paid vacation or an active vacation such as biking or hiking in an exotic locale, travel insurance can help protect the financial investment in your vacation.

6. Should I rent out my house during the vacation period?

Whether you own a second home that you plan to lease to a tenant, or want to rent out your primary residence though an online service, your first step should be to call your insurance professional. Depending on the rental scenario, your standard homeowners policy may not cover losses incurred while your home is rented out, and you may require a more specialized insurance policy.

To learn more about the compensation that is owed to you, speak with our Harrisburg car accident attorneys by scheduling a free consultation today. Connect with Schmidt Kramer by phone, online chat, or our short contact form today, and learn how you can collect damages for your injuries now.

You also should plan a regular talk with your insurance professional so he or she can help you get the coverage you need.