We all know that insurance is needed to protect ourselves from loss in case of emergencies. Many people are not covered to protect all aspects of life and may find a great financial burden if a piece of your financial foundation is lacking. Let’s think about it as protecting your four walls.
Answer yes or no to the following questions to test how well prepared you are to cover risk.
Can you locate all your insurance policies like life, health, homeowner’s
or renter’s, vehicle and disability?
Do you know the type and amount of your life insurance coverage?
Is your life insurance coverage ample to protect your survivors?
Do you know you’re the names of your beneficiaries and contingent
beneficiaries?
Do you know what your health insurance covers and the provisions of
your policy?
Do you have major medical insurance with high lifetime limits?
Do you have disability insurance?
Is the liability insurance on your vehicle adequate?
Is your vehicle collision adequate and not over insured?
Are your personal property and home insured at today’s replacement
value?
Do you know the limits in your homeowner’s policy for losses of
collectables, jewelry, furs, electronics and silver?
Have you had your valuables appraised and insured at current market?
Do you have an inventory of your personal property?
Renter’s: Do you have renters insurance that cover’s personal property?
Any question answered “no” indicates you should take action to improve your household insurance coverage to better protect your assets. Or you may find yourself in the doghouse.
One thing to be on the lookout for being over insured. Meaning if you have a policy for one thing that also protects you from things like disabilities you may not need additional in that area. However, you do want to read your policies and ask questions if you don’t understand all the legal mumbo gumbo. Because although you may be covered in that area will it be enough? Is it limited? Will you need a rider policy?
Part of personal finance completeness includes protecting your assets. Time to get organized and see if you are properly insured. If this has helped you or you have additional comments please let me know! I would like your feedback.
