Growth means change, not just in income or location, but in our risk profiles too. Whether you’re an empty-nester downsizing into a smaller home, an investor purchasing a rental property, or a soon-to-be retirees purchasing a vacation home, your risk profile likely isn’t what it was when a few years ago. Recently acquired assets, changes in personal liquidity, and fluctuations in property values can leave you vulnerable to risk during the times when your life is going though big changes.
So what situations present the greatest challenges to your risk profile and how can you safeguard yourself, your family, and your investments?
Purchasing a New Home
Whether you’re buying a principal residence or a vacation property, a new home represents a significant investment, and one needs to be well protected.. All insurers and all home policies are not the same. Significant risks can arise from many potential losses—including fire, flood, storm damage, and vandalism. An insurance advisor experienced in safeguarding high-value assets can help you ensure that your insurance program is adequate to cover the most costly potential risks to your home, combining the finest combination of coverage and cost.
Buying a Rental Property
A rental property can be a great source of income. If you own or are planning to buy a property where others are going to be living, it’s important to protect your assets from potential damage—both from physical damage like fire, storm, and water damage as well as potential lawsuits persons injured on your property. Landlord insurance should be incorporated into your overall liability program. And if the property lies idle during repairs from a loss, a landlord policy may even help you recoup some of the lost rental income.
Renovations & Additions
Maybe you’re staying in your family home, but are making some improvements or expansions. Be sure that your homeowner’s policy is growing along with your home. A new deck, swimming pool, or guest room can add significant value to you property, but inadequately insuring the new add-ons can also place you at greater risk. Typically, if you are spending more than 10% of the value, you should consult your advisor. An experienced agent can help you be sure that your insurance profile adequately covers all your assets.
An Empty Nest
The kids are grown and out on their own. Now’s a great time to re-assess your risk profile and make any needed adjustments to your program. For example, are your adult children still on any of your insurance policies? Are They driving cars titled in your name? Have you gifted family jewelry items to them but they are still on your policy? These questions and others like them can help you redefine your coverage options so you’re getting the most from your insurance dollar and protecting your assets appropriately.
Big-Ticket Purchases
Maybe the upgrades you’re making extend beyond your home. The purchase of a new car, boat, plane, or jewelry can significantly affect your risk and need for asset protection. By partnering with an insurance provider who’s experienced in safeguarding unique assets, you can protect any big-ticket purchases you make. Your agent should discuss how you might leverage all of your policies for your cost benefit.
Marriage or Divorce
A marriage or divorce can present a significant challenge to maintaining adequate insurance coverage on your assets. Whether you’re merging or separating assets, your risks and coverage options should be presented to you clearly so you can make more informed decisions.Your insurance advisor should help you sort through the best way and appropriate timing to combine or separate your insurance program to your benefit.
At MAGIS, we understand how life changes, big and small, can affect your exposure to risk and potentially your liquid assets, too. We work with individuals and families to develop insurance packages that safeguard all your significant assets without breaking the bank. Why live with unnecessary risk? Contact a MAGIS representative today and discover how our experienced agents can help.
