Property and Casualty Insurance Ideas
Property and casualty (P&C) insurance- we all have it, but few know what we have and what to look for in our coverage. P&C is the name for the insurance that protects your home, auto, and valuables. It also can provide protection against general liability for injuries caused to others.
If you’re like most, you probably purchased coverage from your insurance carrier years ago and haven’t looked at it since. Being at home more than maybe you’d like could provide a little extra time to learn more about your coverage, needs, and to compare costs across various carriers.
Homeowners- All homeowners policies are not the same. Not all carriers will agree on how much coverage to provide on your home. For example, each carrier will estimate the cost to rebuild your home should there be a fire. This insured value could vary significantly from company to company. Make sure this coverage sounds reasonable given what you know about your home. Keep in mind, this is the price to rebuild your house and does not include the value of your land, so it won’t be the same as your appraised value.
There are also three levels of homeowners coverage options- actual cash value, replacement cost, and guaranteed/extended replacement cost. Actual cash value provides the smallest benefit as it pays a depreciated value for your damaged item. For example, if you had your floors replaced, the insurance company would likely pay less than the actual replacement cost leaving you to pay the difference. Replacement cost does just that-it pays the actual cost to repair or replace your damaged/missing item. Guaranteed/extended replacement cost provides the highest benefit as it pays the full price to put your home back into the same condition it was in prior to damage even if that cost is greater than the amount for which you’re covered.
Talk with your agent about your coverage, make sure your limits are in line with today’s estimated costs, and to ensure that you’re not missing coverage on valuables that you might have acquired since you obtained your insurance policy.
Auto- When looking at your auto insurance, make sure your current policy accounts for the miles you currently drive. This figure could have changed significantly since you initially purchased your car-especially if you’ve changed jobs.
As with all types of insurance, make sure your deductibles match your budget. Ask yourself: are you able to pay a $1,000 deductible or would you bother the insurance company with a $500 repair only to see your rates increase after?
Umbrella- If you want to further protect your assets or income, consider talking with your agent about umbrella insurance. Umbrella insurance can provide $1mil or more of additional coverage should someone sue you for an amount beyond what your homeowners or auto insurance covers. For a relatively low amount, you could look to start with $1mil of coverage. A rule of thumb is often to get enough umbrella insurance to match your net worth up to about $3mil. Again, your P&C agent can help you determine an appropriate amount.
Other considerations- When you look to compare pricing of your policy versus that of other companies, try your best to compare apples to apples. Make sure you’re getting a similar replacement value on your home, that your home and auto deductibles match your policy’s, that your auto limits are the same, and that any endorsements you may have on your homeowner’s policy (for items like jewelry, art, or other valuables) are included in the quote you receive.
Some people have auto with one carrier and homeowners with another. Some couples didn’t change insurance carriers after moving in together. Consider consolidating your insurance with one company to potentially unlock discounts.
Also, make sure that you’re looking at a company with a good reputation for paying claims and that has solid ratings from an insurance rating organization such as Moody’s or A.M. Best.
We at Partnership Wealth Management are not licensed property and casualty insurance agents. This is not to be considered insurance advice; the information in this article is being provided only as a guide for you to consider when speaking with a licensed agent.
The opinions voiced in this material are for informational purposes only and are not intended to provide specific advice to any individual. Consult your legal, tax, and/or financial advisor to determine what is appropriate for your situation.
Gay Men’s Chorus of Washington, DC’s A Summer Soiree- We’re excited to be sponsors for the GMCW’s annual event. Moved to a virtual celebration, we’re looking forward to seeing Leslie Jordan and GMCW put on a wonderful event. Click here to learn more.
Girls on the Run- We’re supporting Debbie’s causes, Girls on the Run Central Maryland, as they shift from group activities to home-based kits. The Power Up program is designed to help girls ages 8 to 11 learn more about the connection between physical and emotional health. Learn more about their program here.
Away from the Office
Our office and the markets will be closed on Friday, July 3rd in observance of Independence Day. Have a wonderful holiday weekend!
We are always accepting donations for the local animal shelters – toys, tennis balls, collars, leashes, food, cat litter, cardboard trays, office supplies, cleaning supplies, towels, mats, washcloths, etc. We will accept donations Monday-Friday between 9am & 5pm.
With Heidi’s creativity and cousin Molly’s help, Elise’s 6th birthday was a great time for all. Heidi and Molly created a scavenger hunt with clues that Elise used to find each of her gifts. That along with custom-made cupcakes (including butterfly-shaped chocolate toppers and How to Train Your Dragon themed), Elise was full of smiles all day long. Of course, Fenway and Roxy are always excited for a birthday party because they get special pupcakes of their own!
I was treated to a wonderful Father’s Day with my family. Elise made me a beautiful card, Heidi cooked, and for the first time in a long time, the five of us were home together for the entire day. With as busy as life has been since February, taking the day to relax and enjoy each other’s company was the perfect gift.
I hope you enjoyed this month’s newsletter!
Woody Derricks, CFP®, ADPA®
CA Insurance License #0C40217
As a Registered Investment Advisor (RIA), Partnership Wealth Management is committed to providing our clients with financial planning and wealth management services to help them work towards their financial goals. At Partnership Wealth Management, we have a long history of working with the LGBT community. Among the many services we offer are financial planning and estate planning strategies for gay and lesbian couples. Financial planning is an important part of preparing for the future; contact us today to get started.
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Partnership Wealth Management (PWM), is a registered investment advisor located in Maryland. PWM and its representatives are in compliance with the current filing requirements imposed upon registered investment advisors by those jurisdictions in which PWM maintains clients. PWM only transacts business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements.