During times of economic instability, I find myself reevaluating my financial situation due to inflation and the increase in prices of goods and materials.
I find myself paying a little more attention to the temperature setting on the thermostat, eating out a little less and editing my grocery list in order to lower expenses. For some, it might be a time they consider shopping for their insurance. Of course, this is not applicable to me; since I work for Farm Bureau, why would I have my insurance anywhere else?
More importantly than just thinking about insurance premiums, it is a great time to take a closer look at the coverage and limits on your current policies. Do you ever stop to think that maybe you are paying for coverage you no longer need or that you might be underinsured?
N.C. Living
Affects on Automobile Insurance Rates
For example, the homeowners policy in North Carolina has an Inflation Guard built in, which means the Coverage A Limit – Dwelling Amount, or the amount of coverage on the structure itself, increases at a specific percentage each year. What if inflation rises and prices of materials along with labor costs increase at a higher rate than the inflation percentage in the policy? This could leave your home underinsured, meaning that if it were to be destroyed by a covered peril, there might not be enough coverage to rebuild the home.
With automobile insurance, our liability limits, or what is paid on our behalf if we commit a negligent act behind the wheel of a vehicle causing bodily injury or damage to property, that are currently listed on our policy might not be enough to protect all of our assets. The coverage we selected years ago might not be suitable for what we need now.
What about the policies insuring your boat, tools and equipment, farm machinery, jewelry, gun collection, golf cart, mobile home, rental property, vacation home, and so on? Now is a great time to meet with your local Farm Bureau Insurance agent to make sure all your insurance policies are up to date and meet the needs of you and your family.
About the author: Allan Williams is director of training and marketing for the North Carolina Farm Bureau Mutual Insurance Company, Inc.
