Review Your Insurance Coverage For Gaps

If you own a home or an automobile, chances are you have an insurance policy to cover you against the risk of loss. But you may have gaps in your coverage under these policies, and you may need other types of insurance as well. Here are some things you should consider.

Market vs. replacement cost. Before you purchased your policy, you may have shopped for rates, but did you also shop for coverage? Not all policies are created equal. For example, some homeowner policies provide for "market value" coverage of your home's contents while other policies provide for "replacement cost" reimbursement. Since items generally decline in value as soon as they are used, a market value policy may not pay you enough to replace your damaged, destroyed, or stolen property. Owners of Florida property also need to be clear on the differences between "standard homeowners or business policies" and "flood" and "windstorm" policies. The later two coverages are generally excluded from the standard policies and may require the purchase of additional coverage.

Liability insurance. One of the risks facing automobile drivers is the possibility of causing an accident and being sued for damages. While most automobile policies provide liability coverage, they typically set a maximum dollar limit per accident. Are your limits adequate? If you have a business, even a part-time one from home, do you have adequate business liability coverage?

Life insurance. It is important to periodically review your life insurance needs, especially when faced with major life-altering events (for example, marriage and birth of children). A 20-year-old single man may not need a $1,000,000 life insurance policy. But a 45-year-old father who supports a family of four has to consider the financial devastation his family could suffer in the event he dies without adequate coverage.

Disability insurance. Accidents can happen to anyone. Disability income insurance can protect you and your family from financial hardship, providing a steady monthly income in the event of disability or long-term illness.

It's impossible to insure against every contingency. However, you should evaluate your situation and ensure that your critical insurance needs are covered. Don't assume that because you reviewed your policy five years ago that it still provides the same coverages; policy provisions do change. You should periodically review your insurance policies carefully to understand their coverages and limitations. Contact us; we will work with you and your insurance agent.

Related Information:
        Consulting Services
        How Much Life Insurance Do You Need?
        Services Available
        Small Business Services
        Who should own your life insurance policy?

© Copyright 2001 Raymond S. Kulzick. All rights reserved. 010901.