Why You Should Review Your Insurance After A Major Purchase

You see, major purchases often come with a hefty price tag, and it’s essential to ensure that you’re adequately protected in case the unexpected happens. Think about it: if you were to lose your new home to a fire or your car was stolen, would your current insurance policy cover the full cost of replacement or repair?

In this article, we’ll explore why reviewing your insurance after a major purchase is a must, and what you can do to ensure you’re properly covered.

You’ve Got a Bigger Asset Base

When you make a major purchase, you’re essentially adding to your asset base. This means that you’ve got more to lose if something goes wrong. For example, if you buy a new home, you’ll want to ensure that your homeowners’ insurance policy covers the full value of the property, including the cost of rebuilding or replacing it.

Similarly, if you buy a new car, you’ll want to make sure your auto insurance policy provides adequate coverage in case of an accident or theft. This might include comprehensive coverage, collision coverage, and even roadside assistance.

Your Old Policy May Not Cut It

Here’s the thing: your old insurance policy might not be enough to cover your new purchase. For instance, if you bought a condo a few years ago and your policy has been renewed annually since then, it’s likely that your coverage hasn’t kept pace with the rising value of your home.

The same goes for your car or other assets. If you bought a new car and your old policy only covers the minimum liability limits, you might find yourself seriously underinsured in the event of an accident.

You Need to Consider Additional Coverage Options

When reviewing your insurance after a major purchase, you should also consider additional coverage options. For example:

• If you bought a new home, you might want to consider flood insurance, earthquake insurance, or even a home warranty.
• If you bought a new car, you might want to consider gap insurance, new car replacement insurance, or even rental car coverage.

These additional coverage options can help fill any gaps in your existing policy and ensure that you’re properly protected.

How to Review Your Insurance After a Major Purchase

So, what can you do to review your insurance after a major purchase? Here are a few tips:

• Read your policy carefully: Take the time to read through your policy documents and understand what’s covered and what’s not.
• Consult with your agent: Your insurance agent can help you assess your current policy and determine if you need additional coverage.
• Get quotes from multiple providers: Shop around and get quotes from multiple insurance providers to ensure you’re getting the best deal.
• Adjust your coverage limits: Make sure your coverage limits are adequate to cover the full value of your new purchase.

Conclusion

Making a major purchase is an exciting milestone, but it’s essential to ensure that you’re properly protected in case the unexpected happens. By reviewing your insurance policy after a major purchase, you can ensure that you’ve got the right coverage in place and avoid any costly surprises down the line.

So, take the time to review your insurance policy today and make any necessary adjustments. Your wallet (and your peace of mind) will thank you.