LOCATION — As families make their New Year’s resolutions, AAA experts recommend adding a crucial financial task to the top of the list: reviewing insurance coverage.
Reviewing insurance is essential for ensuring that homes, vehicles and financial assets are adequately protected. Adrienne Woodland, a spokesperson for AAA-The Auto Club Group, emphasizes that many homeowners renew their policies automatically, often overlooking significant changes in their lives and homes over the past year.
Home renovations or additions can significantly increase a home’s value. Homeowners should ensure their dwelling coverage limits reflect these changes, as projects like kitchen upgrades or roof replacements can influence insurance needs.Life changes, such as marriage, divorce, or welcoming new children, also affect insurance coverage requirements. Keeping household occupant information current is vital as these changes can influence liability considerations and personal property needs.
Acquiring high-value items like jewelry and artwork may exceed standard property limits. Homeowners must consider adding scheduled personal property riders to ensure full protection for such valuable items.With the rise of remote work, homeowners are encouraged to cover home office equipment under their insurance. Standard policies often limit business equipment reimbursement to $2,500, which may be insufficient for devices like computers and monitors.
Certain home upgrades can lower risk and may earn discounts on premiums. Improvements such as updated plumbing, security systems and water leak detection devices can both protect the home and reduce insurance costs.
Finally, homeowners should verify that their dwelling coverage adequately reflects the current cost to rebuild, rather than just the original purchase price, to ensure sufficient funds in the event of a major loss.
Drivers should also revisit their auto insurance coverage as circumstances change. Woodland highlights that modifications like buying a new vehicle, adding a teen driver, or changing neighborhoods can impact premiums and protection levels. It’s essential for drivers to check that their liability limits are adequate and that necessary discounts are being applied.