Do You Have Too Much Insurance?
My friend, Tara McAllister (mom and savings guru), says, "Review your insurance policy annually with your agent or a customer-service representative. Does your home owner’s insurance include the value of the land, for example? The land isn’t going anywhere, even in a twister, so you don’t need to insure it—just the structure and your belongings. If you have an older car, the annual premiums and deductible might make collision and comprehensive insurance cost more than the car is worth. On any insurance policy, auto or home, think about a higher deductible. Because filing numerous small claims can raise your insurance rates, you may be better off covering minor losses yourself and getting a lower rate with a high-deductible policy. You may also have unneeded special riders on high-value items you no longer own—an heirloom ring you gave to a daughter for her wedding, for example. Or you may be paying for off-premises property coverage, which covers loss of goods outside your home, when you rarely if ever carry around valuables. If you think you might be over insured and want an opinion from someone besides your agent, go to the Insurance Information Institute site, at iii.org. "