The Covid-19 pandemic turned our country upside-down. From working at home to toilet paper shortages, the pandemic made everyone look at things differently. With this in mind, it may be time to review your insurance needs.  

Auto Insurance

Most people understand that the cost of your automobile insurance policy depends on many factors, including:

• Credit score. A high credit score can help lower the overall cost of your insurance premium. 
• Accident history. Your record of moving violations, including speeding tickets and accidents, affects the automobile insurance rate that you are offered. A clean record can help your bottom line.
• Make of car. The make of the car you are insuring is a determining factor in your coverage. In fact, cars that are targeted by thieves are often slightly more expensive to insure. Likewise, sports cars and luxury automobiles are more expensive to insure than typical daily drivers. 
• Age of car. As your car ages, it loses value. This has a direct effect on the rate you are charged to insure it. 

A lesser-known factor is mileage. The amount of miles that you drive your vehicle each year has a bearing on your auto insurance rate. The more you drive, the more you increase the risk of an accident or damage to your vehicle. Mileage affects the cost of your policy.

If, however, you are no longer commuting long distances due to a career change, retirement, or a work-from-home position, talk to your insurance agent about re-evaluating your policy. It may even save you a few dollars. 

Homeowner’s Insurance

The pandemic has turned the real estate market on its ear. Everything has changed, including insurance needs. You should have your homeowner’s insurance policy re-evaluated by your agent for two reasons. 

Value

The United States is in an extreme seller’s market. The supply of available homes to buy is way down and anxious buyers are driving up prices. Homes across the country are in multiple offer situations and are selling for tens of thousands of dollars over the asking price.  

This frenzy could also drive up the value of your home. While this sounds great at first glance, realize that it may leave you underinsured in an emergency. Having your insurance company appraise your home and adjust your coverage accordingly is important right now.

Replacement Cost

The second issue that can arise relates to replacement cost. Your current homeowner’s policy is written to reflect a replacement cost of your home. You may have a 200K replacement cost on your current policy, which was previously enough to rebuild your home after a fire or other damage.

Unfortunately, there is a shortage of building materials which has driven the price up tremendously. The 200 thousand dollars that your policy offers may no longer be enough to purchase the materials you need. 

Recreational Vehicle Insurance

Sales of boats, RVs, motorcycles, and other recreational vehicles surged in 2020. People wanted to be able to safely spend time outdoors with their families while still heeding government-mandated shut-downs.

While this is a boon to both recreational vehicle manufacturers and our national parks system, it has led to a dwindling supply nationwide. In fact, so many people purchased recreational vehicles in 2021 to date that there are billions of dollars of backlogged orders waiting to be filled.

If you purchased a new recreational vehicle in 2020 or have one scheduled to be delivered in 2021, make sure you talk to your agent about adequate coverage. Family Insurance Centers offer boat insurance as well as motorcycle and RV insurance.

No matter how the pandemic affected you personally over the last year, chances are it probably affected your insurance needs. Call us today. We’d love to see what we can do to help.