Has Your Insurance Kept Up with the Times?
February 17 2010 - 9:05AM
PR Newswire (US)
WARWICK, R.I., Feb. 17 /PRNewswire/ -- Can you still fit into the
jeans you wore in college? For many, the waistline might be snug
and the buttons dangerously close to popping. Even if they do fit,
styles change and most people wouldn't dream of wearing the same
outfit decades later. However, the same can't be said for updating
personal insurance coverage, even though the fit of an insurance
policy is far more important than the fit of clothing. This failure
to keep up with the times can be worse, because the auto and home
insurance needs of someone just starting out are much different
than the needs of a person with more life experience under his or
her belt. In the event of a loss, the difference could be
financially disastrous. "Too often, the importance of having the
right insurance is not realized until a loss occurs, and consumers
are left paying more than expected," said Bob Lundgren, vice
president for marketing and product development of MetLife Auto
& HomeĀ®. "As time goes by, most of us tend to accumulate things
of value--rewards for working hard. Too many people unknowingly
allow an insurance gap to develop over time by forgetting to take a
look at whether their insurance coverage is sufficient, and may be
surprised to discover this could leave them paying out of pocket in
the event of a claim. Fortunately, it's never too late to step back
and take a quick inventory of where you've been and what you have."
When taking stock, ask yourself the following: -- Have you
accumulated a lot of valuables? The standard homeowners policy has
a $1,500 limit for items such as jewelry, watches, and furs, and
$2,500 for silverware. Over time, these limits may no longer be
sufficient. -- How much will you need to repair or rebuild?
Although values have decreased in the past year, the fact remains
that the cost of home repairs continues to rise. Especially if
you've made a lot of home improvements through the years, your
property may be underinsured. -- Has the age of your house cracked
the building code? Most people incorrectly assume that if a loss
occurs, their home insurance would pay for upgrades to the property
required by today's building code or ordinances, such as upgraded
wiring. In fact, most policies do not cover these upgrades, leaving
homeowners in a financial bind. Over the years, the need for
'ordinance or law' coverage becomes increasingly important. -- Do
you have a lot to be liable for? People who have much to show for
years of hard work need to take a look at their personal liability
limits. This is the coverage on your auto and home insurance
policies that protects against personal injury lawsuits. Having low
limits may expose your personal assets if your coverage is not
adequate to cover a large loss. -- Will you end up paying too much
out of pocket? As time goes by, people acquire things--automobiles,
houses, and secondary items, such as boats and vacation
properties--and these items often necessitate separate insurance
policies. Consider combining everything through a "package policy."
In addition to simplifying bills, it will lower the amount paid out
of pocket, in the form of one standard deductible applied to any
loss. This can mean significant savings if a large loss occurs.
Another benefit to a package policy is that it can help reduce gaps
in protection that may exist with simple "standalone" policies.
Auto, home and other policies that are written on a standalone
basis or through different insurance companies have a tendency to
leave gaps in coverage, which can result in unforeseen
out-of-pocket financial "surprises" at the time of a loss. By
securing a package policy, this can be avoided. "A package policy
can be the ideal solution for a person with more complex insurance
needs," said Lundgren. "These policies have the ease and
convenience of one deductible, one bill, and one renewal date. A
package policy can also provide you with comprehensive insurance
protection and higher coverage limits than the standard policy. The
end result is greater peace of mind." The MetLife Auto & Home
companies, subsidiaries of MetLife, Inc. (NYSE: MET), are
collectively one of the nation's leading personal lines property
and casualty insurance providers, insuring over 3.8 million autos
and homes. Their affiliate, MetLifeĀ®, is a leading provider of
insurance and financial services with operations throughout the
U.S. and Latin America, Europe, and Asia's Pacific regions. For
more information, please visit http://www.metlife.com/. MetLife
Auto & Home is a brand of Metropolitan Property and Casualty
Insurance Company and its affiliates, Warwick, RI. Contact: David
Hammarstrom Ted Mitchell (401) 827-2273 (401) 827-3236 DATASOURCE:
MetLife Auto & Home CONTACT: David Hammarstrom,
+1-401-827-2273, ; Ted Mitchell, +1-401-827-3236, Web Site:
http://www.metlife.com/
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