You might wonder what property and casualty (P&C) insurance is all about. How much do I need? What types do I need? And what the heck is an umbrella policy? If you’re curious about P&C insurance, here is a list of issues to consider.
What is Property & Casualty Insurance?
According to Allstate.com, property and casualty insurance are types of coverage that help protect you and the property you own. Property insurance helps cover stuff you own like your home or car. Casualty insurance means that the policy includes liability coverage to help protect you if you’re found legally responsible for an accident that causes injuries to another person or damage to another person’s belongings.
Issues to Consider if You Own Real Estate
If you own a home does your homeowner’s policy cover less than 80% of the home’s replacement value? If so, consider increasing the coverage limit as the insurance carrier may not fully cover the cost of damage caused by an insured event.
Have you made substantial improvements to your property like adding a pool or addition? If so, consider talking to your agent about increasing the coverage to 80% of the replacement value. Also consider increasing your liability coverage if needed.
Has your property value increased since the last review with your agent? Again, consider increasing the coverage to 80% of your replacement value.
Issues to Consider for Auto Insurance
Did you sell or purchase a car? If so, review your existing or new coverage against other carriers to see if there’s a benefit to changing carriers.
Is your collision and comprehensive coverage adequate considering the value of your autos?provides additional liability coverage — over and above the limits on your auto and other personal liability policies.
Have you reviewed changing your deductible, which could increase or decrease your premium?
Do you have children on your auto policy? If so, you might be eligible for good student discounts, part-time driver (i.e. college students) discounts. Also, check to see what age they are required to leave your policy.
Personal Property & Umbrella Policy Issues
Do you need to create an inventory of personal property in your home? If so, consider walking through your home and recording your stuff in each room. Then consider itemizing these things on a list to prove ownership.
Does your policy include coverage for specialty items like jewelry, antiques, collectibles, guns, coins, and cash? Consider scheduling specific items on your policies.
Does your net worth exceed your liability coverage on our home and auto policies? If so consider getting an umbrella policy that covers your net worth.
What is an Umbrella Policy?
According to Farmers.com, umbrella insurance provides additional liability coverage — over and above the limits on your auto and other personal liability policies.
These policies are usually offered in increments of $1 million up to $10 million in coverage. Coverage for $1 million usually costs less than $200. A $2 million policy is usually less than $300 in my experience.
Takeaway
Property and casualty insurance covers your home and auto property and liability risks. If your property values or circumstances change, there are issues to consider with your property and casualty agent to determine if you need more coverage. It’s easy to miss issues when it comes to P&C coverage. Hopefully, this post will better prepare you for your next meeting.
If you’d like a checklist, click here to download my What Issues Should I Consider When Reviewing My Property & Casualty Insurance Policies? If you like this checklist, consider subscribing to my newsletter as I often include these checklists and guides in it for free.
