What’s a policy review and do I need one? | PEMCO

What’s an insurance policy review and do I need one?

Insurance isn’t a “set it and forget it” purchase, yet many of us insure our homes, cars, and personal property the same way we did 10 years ago. Life changes, big and small, can change the amount or type of insurance you need.

As the insurance you get, PEMCO offers free, no-obligation policy reviews any time (not just at renewal) to make sure you’re protected for the life you live today. We’ll also check to see if you qualify for any new discounts that didn’t exist when you bought your policy.

What happens during a policy review?

Think of an insurance policy review like your annual wellness checkup – not something you do because something’s wrong, but a self-care step you take to ensure everything continues to go right.

During your review, your local PEMCO agent or a representative at 1-800-GO-PEMCO will verify your account information and ask you about any concerns you have. They’ll update your file to include things you’d probably expect like recent home remodeling. And they’ll ask about a few things you may not think would affect your insurance, including changes to your:

• family (a new driver in your household, caregivers, children leaving for college),
• commute distance (new job, new address, rideshare driving, or retirement),
• hobbies (coverage for specialized equipment or supplies).

With your updates in mind, they’ll identify potential coverage gaps and suggest options to consider. They’ll also look for outdated coverage you may no longer need and opportunities for savings and discounts.

In most cases, the whole process takes less than 30 minutes.

Coverage gaps can be easy to overlook

Sometimes members describe their policies as “full coverage.” But full coverage may not mean exactly what you think. All insurance policies sold in the United States, including PEMCO’s, limit or exclude coverage for certain things. Ask your agent if you’re concerned about:

1. High-value items like jewelry, firearms, collectibles, and fine art. Your PEMCO policy has maximum combined and individual limits for certain types of high-value belongings. For example, our policies cap jewelry coverage at a combined value of $5,000 with a maximum of $2,500 per item. If that’s no longer enough, you can buy additional protection for your valuables with per-item coverage (with no deductible).

2. Certain environmental and geological events. Nearly half of the homeowners in the United States think that their homeowners policies cover flood damage like you see on the news after a catastrophic storm. Unfortunately, that kind of flooding typically requires separate flood insurance, sold through the federal government’s National Flood Insurance Program and a few specialty companies.

   That’s also the case for earthquakes. Although PEMCO doesn’t sell flood or earthquake insurance directly, our affiliate PEMCO Insurance Agency can help you explore your options. If you insure your home with PEMCO, you’ll have a head start with information we already have on file about your home, like age, square footage, and construction characteristics.

3. Protecting your net worth. At minimum, everyone needs enough liability coverage to protect their current net worth. Umbrella coverage guards your assets, for example, if any driver on your policy (including teens just developing their skills) is found responsible in a very serious accident. PEMCO offers Umbrella liability coverage that adds an extra $1 to $5 million on top of what your eligible policies provide. In addition, you can get an optional $1 million in protection for your family if you’re ever hit by an underinsured driver. To be eligible for PEMCO Umbrella coverage, you would need to have both your auto and home policies with PEMCO and maintain certain limits on those policies.

How an insurance review can save you money

An insurance review isn’t all about identifying coverage gaps. It also can save you money in cases like these:

1. Eliminating coverage you no longer need. Once your car reaches a certain age and level of depreciation, you may consider discontinuing its comprehensive and collision coverage. That’s because the car’s value has depreciated to the point that a claim following a collision, theft, or other covered loss may not be worth much more than the policy’s deductible (the amount you’ve agreed to pay out of pocket before insurance kicks in). Auto policies in the United States are structured so they can't pay more in repairs than the car's actual cash value. We can run the numbers to help you decide if eliminating those coverages could be a practical choice.

2. Adjusting deductibles. When you bought your policy, you may have opted for a low deductible out of concern that if you ever needed to make a claim, you may not have the cash on hand to cover it. However, if your emergency fund now consistently contains more than a few thousand dollars, you may be comfortable choosing a higher deductible to save on premiums.

3. Discovering discounts that weren’t available when you bought your policy. A common case is a young driver whose grades have improved enough to now qualify for our Good Student Discount. We’ve also expanded our discounts over the years, including Protective Device Discounts for members who use water leak sensors and whole-house shutoffs if a leak is detected.

4. Policy bundling. You can save money on premiums if you buy more than one of your insurance policies from us. For example, if you already have your auto policy with PEMCO, switching your renters insurance to PEMCO could save you money on both.

Reach out for a free policy review

With PEMCO, you never have to go it alone when it comes to protecting the people, places, and things you hold dear. For a free, no-obligation policy review, talk with your local PEMCO agent or call 1-800-GO-PEMCO to speak with a representative.

Examples and coverage descriptions above are for general educational purposes only, do not reflect every possible situation, and do not replace the language in your policy contract. If you have questions, talk with your local agent or a representative at 1-800-GO-PEMCO.