A Good Suggestion Is Worth More Than Two Cents

Having followed along with past Project Money seasons, I was certain that the topic of insurance would invariably work its way into my journey. The suggestion to compare insurance coverage, deductibles, and premiums is often made by Summit coaches during the competition. I recently found out first-hand why my coach, Patrick, recommended it and why everyone should do it, no matter their situation.

When I became a homeowner in 2011, I used an independent insurance agency for homeowner’s insurance. As a first-time homebuyer, I was drawn to the idea of a one-stop shopping experience. Over the years, I have stayed with them for the benefits of working with a licensed expert who understands my coverage needs and offers a choice of carriers with competitive pricing options.

For the past 10 years, I’ve made the mistake of becoming complacent with the convenience that the agency offers. I escrow my homeowner’s insurance and each year have blindly renewed the policy without considering any changes that may have occurred. I recently contacted my agent and learned that a lot of changes can happen in a decade. In my case, a new insurance company had been added to the partnership that offers better coverage for a lower premium than my previous policy.

Another reason to review the insurance policy is to identify any gaps in coverage. The cost to rebuild the home may have increased or a renovation may have affected the value of the home. Some additions, like installing a security system or upgrading to a hail-resistant roof, for example, may actually qualify for additional discounts on the policy.

Ultimately, the purpose of insurance is to protect your investment. Whether your insurance needs are business, home, auto, life or health, it’s important to do the research and review coverage periodically. Participating in Project Money has motivated me to give this topic its due diligence, which has resulted in improved coverage and lower costs. What will your results be?