Consolidate insurance, is this a wise move? There is a wide variety of insurances that we may have in our portfolio. The most common is car and home insurance. We could have flood insurance, umbrella liability, and more. So the first thing you need to do is take a look at the assets that you own and decide if that item is something that:
Is currently insured
- Must be insured
- Should be insured.
There are some obvious assets in your portfolio that have statutory requirements that says you must carry insurance. There may even be rules on minimum coverage requirements. For example, all states require that you have car insurance. Lenders most often require that you obtain homeowners insurance in order to mitigate the possibility of loss for them. Landlords and storage units usually require that you have some form of renters insurance. These are but a few of the many instances that would require you to be insured.
Now to the question: should you consolidate your types of coverage? There are two primary reasons why a person may choose to consolidate. One, it is much easier to keep track of and make payments to a single insurance company. Otherwise, if you had five different policies from five different providers, you could spend a significant amount of time keeping track of when a payment is due, writing checks to each one, constantly dealing with renewal deadlines, chasing different representatives about claims or plan modifications, along with a myriad of other administrative issues.
Second, and most important, the reason to consolidate is the cost. Many insurance companies give discounts for carrying coverage across multiple insurance products. Less expense to you, simplicity in administration, and a single point of contact is you need some help.
Taking the Next Step
When your insurance is all in one place, it’s also easier to see the missing pieces. For example, what happens if you have a claim on your insurance that is not covered by the policy or if the amount required to rectify the incident exceeds your policy limits?
This is where an umbrella policy comes in. An umbrella policy is a liability insurance plan that is used to cover the gaps in your existing plans and pay up to specific policy limits above and beyond your general coverage. And it can be surprisingly affordable.
The key thing to remember is to protect your assets and limit your liability with the correct coverage. Consolidation may be a wise move for your goals. If you have multiple policies, it is well worth looking into.
Your can find more insurance information at the National Association of Insurance Commissioners.
Article: Consolidate Insurance: Really? Is this Wise?
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