Insurance Check-Up: Are You Really Covered?

 A soft inquiry, however, is typically done when you request a quote from an insurance company and doesn’t impact your credit score.

You should also check your credit report for errors, and review your beneficiaries to make sure they are correct. Additionally, it’s a good idea to shop around for quotes on homeowners or auto insurance each year to ensure you are getting the best rate possible. By doing so, you can save money and ensure that your policy matches up with your financial goals.

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It's a good idea to review the sum insured of your healthcare policy annually, in light of rising healthcare costs and new treatment options. It's also a good idea to offer a choice of sum insured levels for your employees, so that they can choose the cover that suits them. This flexibility is especially useful when offering family floater plans, where the sum insured covers all members of the group.

Work out the sum insured of your home, car or other property carefully to avoid being underinsured. You can use online calculators to help you calculate an accurate figure, or ask your insurer for a professional estimate. Ensure that your chosen sum insured is adequate for your circumstances, and that it will be sufficient to rebuild your home or replace your car in the event of a total loss.

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Insurance is an essential component of any financial plan, covering unforeseen losses and expenses. However, many homeowners fail to understand the specifics of their policies and coverage limits.

It is a best practice to review your policy on an annual basis and be aware of any limitations in your coverage. Getting to know your policy can save you time, money and frustration when dealing with an insurer on a claim.

Coverage Limits

The coverage limits of a policy define the maximum amount that an insurer will pay for a covered claim. If your expenses and judgment exceed the insurance limit, you will be responsible for paying the remaining amounts. Choosing your coverage limits should balance your assets, local laws and other factors with the cost of your premium.

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