Ensuring Your Family is Covered with Insurance

Navigating Family Insurance Coverage

You’re not on your own anymore – you have your own family and are responsible for taking care of them every day, including protecting them on the rainy days. While selecting a family insurance plan doesn’t make for riveting conversation around the dinner table, it is important that you explore the insurance protection you need to safeguard everyone.

Preparing today will benefit your family by ensuring they have adequate medical coverage and financial coverage in the event of a tragedy. There are also some factors to think about when it comes to homeowners and car insurance, now that you’re building your life with children in Virginia. Here's what you should know about shopping for insurance, and ways you can save money on your insurance premiums.

Homeowners Insurance

When buying a home and carrying a mortgage, most mortgage lenders require you to have homeowner’s insurance. Before you can get a quote on home insurance, you may want to request the current home owner pulls a CLUE (Comprehensive Loss Underwriting Exchange) report for the house that you’re looking to buy. This report outlines the history of the insurance claims for the property for the last seven years and will give you a good idea of any major risks that may increase your premiums. Homeowners can request a free copy of their CLUE report online.

Protecting your house and your assets is one component of home insurance, but there are other parts to consider, too. As a homeowner, you are liable for things that happen on your property, so it’s important to obtain enough coverage to protect you from any potential lawsuits that could arise from people getting injured on your property. Ask your insurance company to explain your options.

Also, if you’re considering any home improvement projects, alert your insurance company to those improvements if they cost $5,000 or more because you’ll want to update your policy to be insured adequately.

Auto Insurance

As your family grows, you’ll probably get to the point that you want to buy a larger vehicle to fit everyone, or a safer vehicle for better protection. When you go through this upgrade process, your insurance premiums can change drastically based on the year, make and model of the vehicle you choose. Make sure you research all the possibilities and the impact on your budget before you drive that car off the lot.

Also, you’ll want to consider sufficient coverage in case you get into an accident. Ask your insurer to explain:

• Liability limits: The maximum amount your liability policy pays.
• Liability insurance: What your policy would pay to other parties for damages to their vehicle from an accident you caused.
• Medical payments and personal injury protection.
• Underinsured motorist coverage: Covers hit and runs or people without insurance.
• Reimbursement coverage, towing and labor coverage.

Health Insurance

Health insurance policies are complicated when it’s just you, but when you’re trying to determine the best options for your spouse and children, the process can become overwhelming. It’s worth your time to analyze the costs and benefits of any employer-sponsored health care plans available to you and your spouse.

Finding the right plan is paramount as your children are born and grow. For budgetary purposes, you might want to look into health savings accounts or flexible spending accounts that allow you to set aside pre-tax money for various medical and daycare expenses.

Life Insurance

When you were single with no children, life insurance likely was one of the last things you thought about. Now with a spouse and dependents, you’ll need a strategy that accounts for all of the income you and your spouse earn, plus all of the expenses that come with raising your children.

Considering the possibility of death for you and your spouse is never pleasant, but purchasing a life insurance policy that takes care of survivors is vital to long-term planning. You’ll have a choice between whole life insurance and term life insurance. Whole life insurance policies are more expensive, but they build cash value over time. A term life insurance policy is less expensive when you are younger, and the premiums increase with age.

How to Save on Your Insurance Policies

There are several ways you can get a discount on your insurance policies. Here are some of the ways you can save money:

1. Ask your insurance agent if they offer a discount for insuring your home and vehicle with the same company.
2. Learn what elements of security and prevention can help you earn additional discounts. Typically, homeowners who have home alarm systems, sprinkler systems, smoke detectors and dead-bolt locks are eligible for get homeowners a discount on their home insurance policy. For auto insurance, having automatic seat belts, air bags on both sides, anti-lock brakes, rearview cameras and other safety features may help you reduce your insurance premiums. And for health insurance, you can keep your premiums lower with healthier life choices by quitting smoking, keeping your cholesterol low, and maintaining a healthy weight.

Structuring your insurance coverage to acquire adequate protection for your family can become complicated. The National Association of Insurance Commissioners offers a wealth of information on all manner of insurance topics for young families. Conduct your research, and then contact a knowledgeable insurance agent who is committed to customizing a plan for you.