1/3/13

How Much Insurance is Too Much?

The beginning of a new year is an excellent time to review your insurance policies and make adjustments. As a family, we've often laughed about being over-insured. We have health insurance, vision insurance, and dental insurance through my husband's employer. Our life insurance policies are through a private company. We have homeowner's insurance on our house and our property. We also have car insurance on three vehicles for my husband, my teenage boys, and me. The boys help out by paying their portion of the auto insurance since they both have part time jobs. I figured out how much they increased our auto insurance and they each pay a portion twice a month from their paychecks. We also have flood insurance even though we're not anywhere near a flood plain. It's only a couple hundred dollars a year and homeowner's policies don't cover flooding. We're convinced if we ever skip the flood insurance, that's when we'll need it. I also have a separate insurance policy for my home daycare business that covers accidents in my home and legal fees. On top of all that, we also have an umbrella policy to cover pretty much anything and everything else, since we have two teenage boys.

Sounds like too much insurance, doesn't it? Realistically, the reason to buy insurance is because the cost of NOT having insurance is much greater. We hope we'll never have to use most of our insurance policies, but having all these different policies gives us a greater peace of mind as parents and property owners. I hear so many sad stories on the news about people who have lost everything from a fire, a hurricane, or some other unexpected event, yet they had absolutely no insurance to cover replacement costs. Even if you happen to rent your residence, there are rental insurance policies that will at least cover the contents of your apartment or rental home. After all the money we put into buying the things we want in our homes, doesn't it make sense to spend just a tiny bit more to insure it? I often pass on the little insurance gimmicks at the retail stores where we buy cheaper electronics, but sometimes it makes sense to pay an extra $15 a year to cover free replacement on something like a $1500 television.

Since it's a new year, take some time to review your current policies. If you had a baby, changed residences or even purchased expensive new jewelry, you may want to make changes to existing policies. Nearly every time you buy or sell a car, you'll need car insurance to protect yourself from major expenses. The hartford auto insurance coverage is a great option. If you don't insurance at all, I urge you to contact an insurance company and get quotes. It's time and money well-spent!
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