Perform an insurance check-up to begin year

STATEWIDE — As the year takes shape, most people will not keep their new year’s resolutions. However, one thing folks can do at the beginning of 2018 that will pay off throughout the year is an insurance check-up. Some time spent now can pay off throughout the year.

Health insurance has its annual open enrollment period, whether we consumers get it from an employer or buy it for themselves. But the other insurance consumers have - homeowners, auto and life insurance - don’t have an annual enrollment period that demands their attention. Instead, they get renewal notices or descriptions of their current coverage. They go into folks’ physical or virtual to-do pile, and often they do nothing.

When they don’t look at the renewals, they not only miss out on finding out about their policies, but they lose the ability to take advantage of discounts, better coverage, or even the possibility of shopping for a better product from a different company.

But it doesn’t have to be this way. As 2018 is here, the Division of Insurance (DOI), part of the Colorado Department of Regulatory Agencies, encourages consumers to perform an insurance check-up. They may want to talk to their insurance agent or the insurance companies or pull out the policies (and the latest renewal) for a read-through, or both. Ultimately, they want to determine if they need more coverage, less coverage, or different coverage.

Auto Insurance

Vehicles are a year older now. Folks need to know if their auto insurance is still right for their car. Remember, older cars need a different level coverage than newer cars.

• Still need comprehensive coverage (coverage that protects from damage not caused by road accidents - like a runaway cart in a parking lot or hail damage)? Is collision coverage enough?

• Decide on the appropriate level of coverage, based on the age and value of a vehicle.

• What about the deductible? Is a slightly higher deductible affordable this year (and the lower premium that comes with it)?

• Check on liability limits to make sure there is enough protection against injury and damage if the insurance holder or one of the drivers in the household causes or contributes to an accident.

• Lastly, find out about any discounts - safe driving, taking a defensive driving course, good student (for the teens and college students on your policy), and others.

Homeowners

Insurance

There are two things to think about when it comes to homeowners insurance - the home and the stuff that’s in it. In many places around Colorado, home values have increased. Changing home values, as well as increasing material costs, can impact how much insurance folks should have and how much it will cost to rebuild or repair their home should it be damaged by a fire, a hail storm or a tornado.

When considering the things in the home, ask the following.

• Is there more stuff now than when the homeowners policy was originally purchased?

• Is there different stuff?

• Is there less stuff?

This helps to figure out if more or less insurance is necessary to replace or repair possessions if any of them are damaged or stolen.

While thinking about stuff, it’s also a great time to create or update a home inventory. If something bad happens, like a fire or a backed-up sewer, an inventory means residents won’t have to remember everything they lost, and it will make the claims process much easier. Inventories can also help determine if consumers need to change theircoverage level. The National Association of Insurance Commissioners (NAIC) offers a free smartphone app, myHOME Scr.APP.book, that takes some of the headache out of the process. There is one for iPhones and another for Android.  Folks can also download a paper version that works as a good start to a more complete inventory.

While updating a home inventory, remember to add anything new, and to provide details on valuable or antique items.

Life Insurance

It’s important to remember that life insurance is to help surviving family members after the policyholder dies. If there have been changes - marriage, birth of a child or grandchild, divorce, death of a spouse, paying off a mortgage, children finishing college - consider re-assessing life insurance needs.

Review the policy to be familiar with it. Keep these questions in mind.

• Do premiums or benefits vary from year to year?

• How much do the benefits build up in the policy?

• What part of the premiums or benefits is not guaranteed?

• In what situations and through what procedures can cash values be assessed?

• Can the policy be converted into another form of insurance or annuity?

Depending on where folks are in life, they may want to ask their company or agent about “conversion privileges” from current term life insurance policy to a new whole life insurance policy, or folks might also be able to expand their death benefits so they can be used while the policyholders are still living.

The DOI can help

The Division of Insurance Consumer Services team helps people untangle the complex world of insurance, as well as investigating formal complaints about insurance companies or insurance agents. Contact the Division at 1-800-930-3745 or [email protected].

Visit dora.colorado.gov for more information.