7 Insurance Moves That Won’t Leave You High and Dry, According to Brokers

Core Insights - The article emphasizes the importance of regularly updating insurance policies to avoid financial losses due to inadequate coverage when life changes occur or asset values increase [1][2]. Group 1: Coverage Management - It is crucial to revisit coverage limits before a loss occurs, especially after significant life changes such as marriage, having children, or home renovations, to prevent inadequate dwelling limits and insufficient liability coverage [2][3]. - Many individuals only realize the need for updated coverage after experiencing a traumatic event, highlighting the importance of proactive policy management [3]. Group 2: Coverage Enhancements - Adding endorsements that provide specific protections is essential, as opting for the cheapest insurance can lead to gaps in coverage when it is most needed [4]. - Recommended endorsements include replacement cost coverage for personal property, extended or guaranteed replacement cost on homeowners' policies, and umbrella liability coverage for households with significant assets [7]. Group 3: Verification of Coverage - It is a common mistake to assume coverage exists without verifying it, which can lead to expensive surprises when claims are denied [6]. - Many individuals mistakenly believe they are covered for various risks, such as water damage or home business activities, without explicit endorsements [6].