Conduct Your Own Insurance Audit

Many of us re-assess our finances or our health at milestones such as a new year or season. It is more rare that we step back and evaluate our insurance needs.

Lisa Lobo, vice president of personal lines underwriting for The Hartford Financial Services Group says a lot of changes can happen throughout the year that can greatly impact your insurance coverage, but when policies are out of sight and out of mind, we can sometimes fail to make the necessary adjustments to ensure we are fully protected.

Here are four areas that Lisa recommended paying attention to when conducting a self-audit of insurance:

• Take an inventory of your valuables and add personal articles coverage for customized protection;
• Make sure your life insurance coverage is adequate based on life changes;
• Adjust your auto insurance coverage as your needs change, and ask about additional discounts;
• Get renters insurance or update your current policy if you do not own your residence.
  

GET PERSONAL
If you received gifts or treated yourself to treasures such as fine jewelry, furs, golf clubs, and electronics. According to The Hartford, these items often are not covered under a standard homeowner's or renter's insurance policy.
"Often, the limit on yourt policy may not be sufficient," Lobo said, adding that it is always best to keep copies of appraisals and receipts. It can be more difficult to determine the value of antiques or one-of-a-kind items without an appraisal.
If you need more than $5,000 of protection for valuables, a personal articles floater allows you to list them and their value for more customized protection. This added coverage is well worth it if the items are damaged, lost or stolen.
"An insurance company will not pay beyond what you secured as coverage," Lobo said.

CREATE A LIFELINE
If you don't already have a life insurance policy, get one. And with each life change, your life insurance coverage should be reviewed as a simple way to save you and your beneficiaries time, frustration and money. If you recently welcomed a new baby, you should make sure that there are enough resources to provide for your child in the event that something happens to you or your spouse.
Other life changing events that can affect your coverage include getting married or divorced, becoming widowed, and changing jobs or being promoted.

DRIVER SECURITY
If you've retired, changed jobs, or sent a child to college, you might be eligible for increased discounts on your auto insurance. Once you retire, you aren't racking up as many commuting miles, which will likely result in a decrease in your rates.
 Telecommuting also can allow you to take advantage of low-mileage discounts. "There are often credits or discounts or special rates applied based on the way you use your vehicle," Lobo said.
The Hartford also recommends notifying your insurance company if you have a child that will no longer be driving a vehicle covered under your policy -- such as a child away at college -- as this could result in savings.
"There's always opportunities to look for how to improve the price you pay," Lobo said.

PROTECT YOUR PLACE
 If you own your home, you should reassess your coverage to make sure it's adjusting to accommodate changes in home value and to ensure current rates are competitive.
Also, it's a good idea to capture video footage of all the contents in your home and to keep a log of when your policies are up for renewal.
Lobo recommended securing enough coverage to replace your home if it is severely damaged by an act of nature or you lose it entirely in a catastrophic event.
"Also think about credits," for deadbolt locks or alarm upgrades, she said.
Finally, if you're a renter, remember that a landlord's insurance only covers his property, not the renter's contents within the apartment or condominium.
"Up to $15,000 is usually what we see as minimum coverage," Lobo said.
Most renter's insurance policies offer both protection of property and liability coverage - in the event someone is injured in your unit.
 Personal items can be costly to replace if you don't have the necessary coverage, so assessing coverage periodically and especially after you've made a major purchase is important. It's also important to update a renter's policy when a roommate moves out and you've co-owned personal property.
"The landlord is not responsible for replacing a renter's (personal) property," Lobo said.

3 Steps, 10 Minutes to Auto Insurance Savings

One area where consumers look to save money when times get tough is automobile insurance payments.

Lisa Lobo (pictured below), vice president of personal lines underwriting for The Hartford Financial Services Group in Southington, Connecticut, has some tips on approaches you can take without eliminating critical coverage from your policy to cut costs in the short run.

Step 1: Think Long-term

Most insurance companies think in the long-term, too, and offer additional benefits to consumers who have been customers for a long time.

Before switching carriers, check with your insurance provider to see if there are special savings for which you currently are eligible or might soon qualify.

Try to avoid losing protections that could put you in a financial hole in the event of an accident.

The most dangerous action a consumer can take, Lobo said, is to cancel or fail to purchase insurance coverage.

Step2: Delve into Discounts

Many auto insurance providers offer group plans from employers or through professional associations, business or alumni groups. "Compare apples to apples," Lobo said.

Some companies will give price reductions on policies that are paid in full, rather than monthly installments and some will break up the year into six-month payment intervals.

There also are family discount options when members of a household insure multiple vehicles under a single plan. Once a child comes of driving age or an aging parent or other relative moves into the household, that could have implications for policies. Elderly parents could receive credits for a limited driving status. "You need to make sure there's appropriate levels of coverage," Lobo said, adding that insurance companies must be notified of everyone who could be driving your vehicles.

"Many companies will rate on mileage and usage," she said. "It's going to depend on whether they're a full-time resident or there only six months of the year."

Providers also offer breaks to customers who enroll in plans for multiple products, such as automobile insurance and homeowner's or renter's insurance. "You can get credits for adding your home to the (auto) policy," Lobo said.

Keep carpooling in mind. Drivers who ride with others to and from work can benefit from low-mileage discounts on their policies. "Be considerate of the way yore automobile is being used. For example, for remote workers, maybe the vehicle isn't on the road as much. That's important because carriers use mileage and the way your vehicle is used for rating," Lobo said. "Working from home might change your usage."

Retired persons could be able to change from business use to pleasure use. "That's really where you want to take an assessment," Lobo said.

Consumers should inquire with carriers about other savings categories as well, such as defensive driver discounts, and reductions for hybrid vehicles or safety features such as daytime running lights. "It's making sure your carrier is aware of all the benefits in your vehicle when you bought it or if you've added something on," Lobo said.

Step 3: Pay Wisely

Don't delay in making payments. Late payments lower credit scores, which leads to more expensive rates.

An option for customers facing financial strain is raise the deductible. For example, if your deductible is $250 and you raise it to $500, then the collision and comprehensive coverage premium could be lowered by 15 to 30 percent, while maintaining protection in case of an accident. You should, however, be prepared to pay the higher deductible amount should something happen to the car and you need to make a claim.

Navigating Life, Navigating Insurance

Be it going off the college, getting married, starting a family, buying or junking a car or settling into retirement, insurance needs can change with life's milestones.

Lisa Lobo (pictured at left) , vice president of personal lines underwriting, for The Hartford Financial Services Group in Southington, Conn., has several helpful tips to offer you on savings options and policy provisions to consider with certain life events.

One big influence on insurance costs is when you tend to pay your bills. If, for example, rent or mortgage or utility payments are late, then that will affect your credit score and have a bearing on the cost of insurance policies. Credit scores are factored in when insurance companies determine rates.

So, let's examine some of the changes that can affect your insurance needs.

• Getting Married. This is an important time for you and your new spouse to take an inventory of individual, joint and new possessions - such as engagement and wedding rings - to make sure these items, and any other high-value possessions or gifts, are protected. "Know what each spouse is bringing into the household," Lobo said. One option is a personal articles floater policy. This is a separate policy from your homeowners or renters insurance that raises the coverage limit for personal items and protects from other potential problems, such as when an expensive item is lost or stolen. "They should consider multi-car discounts on car insurance. There are credits to adding the home to the (auto)policy," Lobo said. "I would suggest that they bring their assets together." Having insurance policies in both names means that in the event of a death, they automatically transfer to the surviving spouse. When it comes to health coverage, Lobo recommended assessing the benefits each spouse receives and whether you want to seek additional coverage beyond those plans.


• Having a baby. At this point, it's especially important to make sure you have a valid will and expand your life insurance coverage so your child may be provided for if something happens to you, and to ensure that your spouse has the resources to continue to care for your child. "Take stock in everything that you have, and think: If I'm out of the picture, if my spouse is out of the picture, what will the need be?" Lobo said.


• Sending a Child to College. Once your children head out on their own and prepare for their future careers, there are considerations for automobile, health and renters insurance. Will your children have health insurance through a collegiate plan if attending an out-of-state school or can they remain on a parent's policy during their school years? Will they need renter's insurance for an off-campus apartment? As an example of a savings opportunity, if your son or daughter won't be driving a vehicle while in school, then your premium could go down significantly. "There will be some benefit if your child will have no access to your vehicle or won't be the primary driver," Lobo said. Also, most insurance companies offer discounts for students with good grades.


• Retiring. The decision to retire affects almost every aspect of life from income and spending to investments and saving to insurance. Driving less could cut costs and some home insurance companies provide automatic discounts for retirees or perks for living in a gated or retirement community. The chance of theft could be viewed as diminished due to greater presence around the home or spending more time at home, Lobo said.
  
• Losing A Spouse. This can be one of life's most difficult changes. This grief is intensified when the surviving spouse is forced to take on a new role in managing the family finances. While life insurance is the primary consideration in this situation, it is also important to speak with a financial advisor on any changes that need to be made to your investments. In addition, this is a time to remove your spouse from insurance policies and change beneficiaries if a secondary beneficiary has not previously been named. "You will continue to pay for that spouse until we know they're no longer on the policy," Lobo said.

For auto and homeowners insurance, The Hartford offers trained customer service representatives and resource guide books to assist older adults with managing the financial decisions and changes that result from becoming a widow or widower.

Coming Sunday: Lisa Lobo offers "3 Steps, 10 Minutes to Auto Insurance Savings"