Every year, millions of people in Michigan prepare their vehicles for winter’s inclement weather and treacherous travel conditions. Unfortunately, many do so without knowing whether or not their auto insurance policy protects them for any unexpected accidents they might encounter along the way. A recent survey indicated that approximately 60 percent of respondents are not confident they understand their car insurance coverage.

Lack of Confidence

You’ve unpacked your things and settled into your new home. But have you thought
about how this will affect your insurance needs? Buying a home involves more
than just making sure you have homeowners insurance coverage. If you’ve recently
purchased a home, here are some types of insurance that may be impacted by your
recent move.

Homeowners insurance
If you have a mortgage, your lender probably required you to obtain some level
of homeowners insurance coverage. However, you’ll want to make sure that the
amount of coverage that you have will adequately protect you for all possible
losses. Homeowners policies set coverage limits for specific items (e.g., jewelry),
so you may want to look into purchasing a separate endorsement or a floater
if you feel that you need to increase your coverage. You also need to know if
you have “replacement cost” coverage on your personal property and
if you are covered for earthquake damage.

Flood insurance

Homeowners insurance does not provide coverage for flood damage. But those
living on a riverbank or near the ocean are not the only ones who warrant flood
protection. Even if you live in a low-lying area (e.g., near a creek), you may
want to look into purchasing flood insurance. Most companies that sell homeowners
insurance also sell flood insurance, so try contacting your own insurance company for more information.

Auto insurance

If you think that there is no connection between buying a home and auto insurance,
think again. If you’re ever in an auto accident that is the result of your negligence,
all of your assets (including your home) could be subject to liability claims
if the claims exceed the liability limits of your auto insurance policy. So,
you should re-evaluate the existing liability limits on your auto insurance
policy to make sure that you have adequate coverage to protect your home. If
you feel that you need even more coverage, you may want to look into purchasing
a separate umbrella liability policy, which would pay for damages that exceed
the coverage limits on your auto and/or homeowners insurance policy.

Disability insurance

Would you be able to make your monthly mortgage payments if you were unable
to work due to an accident or illness? A disability insurance policy will pay
you a monthly benefit to replace a portion of your income until you are able
to work again. Many employers provide disability insurance for their employees.
If your employer does not offer disability insurance or if you are self-employed,
you can purchase an individual disability policy.

Life insurance

What if you were to die before your mortgage was paid off? Would your family
be able to keep up with the remaining mortgage payments? Life insurance can
provide your family with the funds to pay off their debts, as well as replace
a portion of your income. While many employers offer some level of life insurance
coverage to their employees, this amount of coverage may not be enough to provide
financial security to your family. So, you may want to consult an insurance
professional to help you assess your family’s life insurance needs.

Contact me at (231) 744-9099 or www.muskegonhomeownersinsurance.com