Released: January 9, 2007
The Louisiana Department of Insurance reminds consumers that the beginning of the new year is a good time to look over all of your various insurance policies to make sure you have the policies you need in the right amounts.
“Everyone should carefully assess all of their insurance policies to make sure they have the right types of coverage to fit their individual needs,” Commissioner of Insurance Jim Donelon says. “Knowing exactly what is in your insurance policies will better ensure that you will be protected if a loss occurs.”
It is a good idea to schedule a routine “check-up” with your insurance providers at least once a year. When doing your “check-up” it is important to look at all types of insurance coverages, including home, auto, health and life. Always shop around for identical products and services, since not every company charges the same rate. And remember that an insurance policy is a legal document, so read it carefully.
Homeowners Insurance
* Even if you are not required by your mortgage lender to purchase flood insurance, consider purchasing a flood policy. You should never assume your property won’t be damaged by flood. You can also buy a flood insurance contents policy to cover your furniture, clothing and other items that could be lost if your home is flooded.
Auto insurance
* Talk to your agent about ways you can reduce your coverage costs, including improving your driving record, choosing a higher deductible, installing safety equipment in your vehicle or purchasing multiple policies with the same company.
Health Insurance
* Some health insurers take your lifestyle into consideration when determining your premiums. You may be able to reduce the cost of your coverage if you maintain healthy habits.
* If you are married and both spouses are offered employer health coverage, compare the two plans to determine which one best fits your needs. Be sure to evaluate the monthly premiums, co-pay requirements, deductibles and reimbursement levels.
* Stay in your network as much as possible, and be sure to obtain referrals when required.
Life Insurance
* When buying a life insurance policy, a good rule of thumb is to buy a policy that is equal to five to ten times your annual gross income.
* Review your policy every 12 months or whenever there is a major change in your life, such as a marriage or the birth of a child.
Call the Department of Insurance toll free at 1-800-259-5300 or visit our Web site, www.ldi.state.la.us, if you have any questions or concerns regarding any insurance policies or companies.
“The Department is not only your best source for all insurance-related questions, but we also have the best understanding of the insurance issues specific to Louisiana,” Donelon says.